The pound continued to strengthen against the US dollar in trade heading into the end of last week after the end of meetings for both the Federal Reserve (Fed) and the Bank of England (BOE).
The Fed announced an aggressive interest rate cut of 50 basis points to 5.00%, with markets expecting several more cuts at the remaining meetings in late 2024.
Meanwhile, the BOE kept the interest rate at 5.00%, but changed its previous dovish tone to be more cautious for their further monetary policy setting.
In addition, last Friday also published UK retail sales data for August which recorded figures better than forecast and the previous month.
Examining the movement on the chart of the GBP/USD currency pair, the price managed to maintain a bullish trend pattern that reached the latest high around 1.33400 surpassing the level reached during the two previous meetings.
But the trading on Friday saw the price also being pressed for the price to hover around the 1.33000 zone until the end of the week.
Although the price movement did not continue the momentum in the final sessions, it remains in a bullish trend where the price is still above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart.
If it remains above the 1.33000 level, the price is seen to tend to continue rising higher towards the 1.34000 target while also recording the latest highest level since February 2022.
But, if the price drops below the 1.33000 level, it will be an early sign for investors to be more careful with the risk of a change in the direction of the trend.
The decline could happen again to head back to last week's focus zone at 1.32000.
The focus for the Pound and the US dollar at the start of the week will be UK and US manufacturing and services PMI data to be published.
