Trading was choppy for the GBP/USD currency pair last week with the focus on the Bank of England (BOE) meeting on Thursday and the US (US) NFP employment report on Friday.
On Wednesday, the price showed a significant decline with the expected meeting result with the BOE cutting interest rates by 25 basis points.
The price decline was initially seen to have reached around 1.26300 before bouncing back to make another increase on Friday ahead of the NFP employment report.
In the last session of the week in reaction to the NFP for January, the price rose almost touching 1.25000 but was again pressured to fall back to around 1.24000.
The employment report was quite mixed but overall it was still considered to be in good development although a little slow.
The US dollar showed a strengthening at the close of the last session which is expected to bring positive momentum to the beginning of this week.
Slow price action in the Asian session today (Monday) saw prices hovering below the 1.24000 zone which is a current resistance for prices.
A sustained move below the Moving Average 50 (MA50) resistance line on the 1-hour chart would maintain a bearish trend signal for prices.
If prices continue last week's pattern, the decline is expected to extend to around 1.23000 and then reach the level at the beginning of last week around 1.22500.
However, if the price rise manages to cross the MA50 barrier again, there is still potential for the price to change direction again to rise to better levels again.
The price rise will target 1.25000 to be tested and surpassed before surpassing last week's high at 1.25500.
