Like other currency pairs involving the US dollar, the GBP/USD chart also showed a flat movement heading into the end of last week's trading.
The price situation was driven by a change in the US dollar's trading momentum which was initially strong, but then stalled again.
After the latest US inflation data was published, the US dollar showed a strengthening, but the positive momentum was limited by the report of declining US retail sales data.
In addition, investors have begun to take cautious steps to be in the market as the time is getting closer to the inauguration of President Donald Trump earlier this week.
On the GBP/USD chart last week, the price jumped to the 1.23000 level but retreated back down due to the reaction to the published inflation data.
Until heading into the final sessions of the week, the price hovered in the 1.22000 zone with less clear direction.
Trading that continued at the opening early this week is still in the 1.22000 zone, while price action near the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart is being watched for further clues.
If the price moves below the MA50 barrier and the 1.22000 level, a decline in price is more likely to occur.
The nearest target is to head towards the support level at 1.21000 which was tested in early trading last week.
That level is also an important support zone that the price tested in October 2023 before the price rebound began.
However, if the price manages to make an increase from the 1.22000 zone, the resistance at 1.23000 will be the focus to be tested.
Breaking through that level shows a bullish signal for the price to climb higher towards the next target which is moving to around 1.24000.
