The GBP/USD currency pair price chart last week recorded a weekly increase of around 300 pips showing a bullish pattern.
The situation was driven by the depreciation of the US dollar until the end of the week despite the United States (US) inflation data coming in with an increased reading in January.
Meanwhile, the Pound rose brilliantly with the support of UK economic growth data coming in with a positive reading for the last quarter of 2024.
The focus this week is on UK inflation and employment data which will influence the movement of the British currency.
If observed, the price increase from the beginning of last week has passed several important levels, namely 1.24000, 1.25000 and finally reached the resistance zone of 1.26000 at the end of the week.
A new high was successfully recorded at 1.26300 before the price retreated back below 1.26000 to close the last trading session of the week.
The price has been slowly leveling off below 1.26000 throughout the Asian session this morning to open the week, but the price action that remains above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart is still showing a bullish signal.
If the price continues to be driven up above 1.26000, the pattern of last week will continue with further increases expected towards 1.27000.
The last time the price traded at that level was in mid-December before the decline was displayed until January trading.
Meanwhile, for the expectation of a reversal of direction if it occurs this week, the decline from the 1.26000 level will approach around 1.25000.
Next, 1.24000 will be the target for the price to continue its decline.
