The chart of the GBP/USD currency pair at the end of last week showed a significant jump in price when influenced by the published United States (US) NFP employment data report.
The surge in prices came as the US dollar weakened following a component of data in a published report showing a declining overall reading for July.
Most worrying is that the US unemployment rate soared higher than the previous level, recording the highest rate since October 2021.
The expectation that the Federal Reserve (Fed) is about to ease policy more aggressively has triggered an early signal for a change in trend on the GBP/USD chart with the price surging past the Moving Average 50 (MA50) line on the 1-hour time frame.
The price that initially fell close to the 1.27000 support has managed to make an increase to reach a height of around 1.28400 before retreating slightly and slowly around the 1.28000 zone to close the last trading session of the week.
Resuming trading at the opening of the week earlier, the price slowed below the 1.28000 zone before starting to show a dive at the beginning of the European session.
Investors should bear in mind that the Pound remains at risk after the Bank of England (BOE) last week cut interest rates and put pressure on the currency.
The price is now seeing a drop back towards 1.27000 for the support zone to be tested.
A further drop below that zone would suggest the previous week's bearish move continues again.
However, if the performance of the US dollar is worse this week, the price increase could happen again.
A break above 1.28000 would suggest a retracement towards 1.29000 as resistance to be tested.
