Signals of a change in price direction on the chart of the GBP/USD currency pair were evaluated last week, but the price movement was limited to the end of the week.
Investors remain wary of the uncertain movement of the US dollar since last week when concerns over the risk of a global economic recession erupted.
Market risk-off sentiment supported the US dollar to strengthen, but towards the end of the week the Pound managed to overcome the pressure of the US dollar to show its value surge.
On the GBP/USD chart, the price is seen to have displayed a bearish pattern for several weeks and until last week, the price had reached around the 1.27000 zone.
However, last Wednesday it can be observed that the price rebound occurred from the 1.27000 zone to signal a change in trend.
The price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart makes investors assess the signal of an imminent bullish movement.
The price increase however was limited to the height of 1.27700 at the end of last week's trading session.
Continuing the trade earlier this week, prices are still hovering slowly around that at the opening of the European session this afternoon.
A further move higher if continued is seen to test the resistance zone at 1.28000 before a more clear bullish signal after successfully breaking through it.
The target for the increase to continue higher is towards the target at 1.29000.
However, if the price is pressed to fall back down, the 1.27000 zone will be approached again for investors to pay attention to the price reaction in that important zone.
Breaking lower will expect the price bullish trend for the previous few weeks to continue with the latest target moving to 1.26000.
