The gains on the chart of the GBP/USD currency pair remained stagnant as last week's final sessions saw a retracement driven by a strengthening US dollar.
On Thursday, the Pound managed to outperform the US dollar after the Bank of England's (BOE) policy meeting cut interest rates, but Governor Andrew Bailey delivered a cautious statement and renewed support for the Pound.
The US dollar weakened again after the United States (US) election and investors are cautiously awaiting the results of the FOMC meeting early Friday morning.
After the Federal Reserve (Fed) decided for a smaller interest rate cut, the US dollar gradually strengthened again.
It can be observed on the GBP/USD chart that the price has made an increase but is stuck at the level of 1.30000 which is an important resistance for the price.
The price pulled back down to the 1.29000 zone in last week's trading session and remained hovering around that area at the opening of the week.
However, the tendency is for the price to decline lower with a bearish signal of the price moving below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart.
A break below 1.29000 will see the price attempt to break through the support zone of the past few weeks at 1.28500.
The continued decline will test the next concentration zone at 1.28000 and record the latest 3-month low.
Meanwhile, if there is a surge in the price from the 1.29000 zone beyond the MA50 barrier, there is potential for the price to change its direction of movement again.
However, to continue rising higher, the resistance at 1.3000 needs to be tested first and broken through.
Next, the target will move to a new high around 1.31000.
