The Pound fell in closing trade last week influenced by disappointing economic data readings.
The UK's monthly economic growth in October missed expectations by 0.1%, recording a contraction of -0.1% as previously reported.
Investors expect continued pressure on the Pound this week ahead of the release of UK employment and inflation data, before watching the Bank of England (BOE) policy meeting results.
In addition to the BOE, market attention will also be focused on the FOMC meeting this week as the close of 2024 trading.
Looking at the movement on the GBP/USD currency pair chart, the price has shown a downward trend at the end of the week after previously leveling off below the 1.28000 zone that was tested.
On Thursday, the price decline exceeded the 1.27000 level before continuing again on Friday nearing the 1.26000 zone as the reaction to the UK economic data was published.
The bearish movement is likely to continue this week as the price moves below the Moving Average 50 (MA50) resistance line on the 1-hour time frame of the GBP/USD chart.
If the decline continues below the 1.26000 zone, the price is seen heading towards the next focus zone at 1.25000 which is the support zone tested last November.
If the support is broken, the price will record a new 8-month low with the target moving to around 1.24000.
However, if the price rebounds from the 1.26000 zone, the initial price increase is expected to approach the nearest resistance at 1.27000 to be tested.
Passing that resistance, the increase will continue towards last week's resistance at the 1.28000 zone.
