The bullish trend movement on the chart of the GBP/USD currency pair continued at the opening of the early week yesterday after the price showed a flat movement at the close of trading last week.
Expectations of interest rate cuts by the Federal Reserve (Fed) at this week's FOMC meeting are seen to put more pressure on the US dollar.
The US dollar last Wednesday strengthened when the latest United States (US) inflation data was published, but then weakened until yesterday and gave the Pound an advantage to record its increase in value.
However, investors will also be watching the results of the Bank of England (BOE) policy meeting on Thursday with the expectation that interest rates will be maintained at 5.00% which will influence the movement of the Pound currency.
Prior to that, UK inflation data will be the focus first on Wednesday which will be published at the early opening of the European session.
Examining the GBP/USD chart, the price has made an increase from the lowest level last week around 1.3000 which is seen as a support zone for the price.
The price increase passed the 1.31000 level last week before at the opening of the early week yesterday, the price increase continued to reach the target at 1.32000.
Slow price movement hovered around the zone in trading continuing into the Asian session this morning (Tuesday) with the expected price trend to continue rising higher.
The closest expectation is for the price to overcome the height during the previous NFP data reaction around 1.32400 before heading to the target in the 1.33000 zone.
But on the other hand, if the price continues to decline below 1.32000 and then 1.31700, it will strengthen the expectation for the price to start its decline again.
Heading back to 1.31000 before the target moves to the 1.30000 support zone that was hit last week.
