The Pound on Friday rose slightly on the back of UK retail sales data which came in better than forecast.
The data reading has restored the Pound which had previously fallen following a reaction to the latest drop in UK inflation figures.
With expectations for the Bank of England (BOE) to ease monetary policy, it is seen that it will still be a factor that puts pressure on the Pound after this.
In addition, the strengthening momentum of the US dollar that faded a little at the end of last week also reduced the pressure on price movements.
Looking at the chart of the GBP/USD currency pair, the price has plunged to a recent 8-week low below the 1.30000 zone but bounced back above that zone at the end of the week.
A change in price movement that started above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart gives an early indication of a trend reversal, but investors will continue to evaluate trades early this week.
If the price continues to rise, the closest resistance is at the 1.31000 level to be tested where last week the price also tested that level but failed to break through.
If successfully broken through, the signal is clearer for the bullish trend expecting the increase to continue towards around 1.31700-1.32000.
On the other hand, if the price drops below the MA50 support line and moves below the 1.30000 zone, this indicates a tendency for the price to resume the previous bearish movement.
The decline will mark the latest low of the week with the target moving to around 1.29000.
