The GBP/USD currency pair chart reached a fresh 10-week high with gains posted in the Asian session this morning (Monday).
The price rose brilliantly at the opening of the week compared to the retreat in trading last Friday.
The UK and US (US) manufacturing and services PMI data published are watched by investors at the end of the week to assess the impact on the Pound and US dollar.
In addition, the UK retail sales data which rose higher than expected for January made investors more confident for a positive movement in the Pound.
Several focus data this week will be watched to drive the price direction including US economic growth data and the PCE price index.
Looking at the GBP/USD chart, the decline in the price in the last session of last week is seen testing the Moving Average 50 (MA50) support line on the 1-hour time frame before bouncing in trading that continues today.
The price has reached a new high at 1.26900, but before touching the 1.27000 support level, the price retreated slightly to continue the European session.
The resistance level is expected to be tested and is likely to be broken due to expectations for the price to maintain its upward trend.
For a higher increase, the target is for the price to head towards the 1.28000 zone which was the resistance area tested in December trading.
If the situation changes and the price starts to decline, the closest support is at 1.26000.
The price that plunges through this level will seek lower support around 1.25000.
