With more than 300 pips of weekly gains last week, the price on the GBP/USD currency pair chart managed to record a new 4-month high.
Although there was not much catalyst for the Pound, the price maintained its upward trend following the significant depreciation of the US dollar in the market at the opening of March.
This is due to concerns about the risk of economic growth in the United States (US) that will be affected by the tariff war that has begun.
The NFP employment report at the end of last week was also gloomy and this week, the US inflation report will be an important market indicator in addition to driving the direction of the US dollar.
At the end of last week, the price managed to jump above the 1.29000 level with a new high reached around 1.29400.
Resuming trading at the opening of the week, the price remained slowly hovering in the 1.29400-1.29000 range in the Asian session.
Although flat, the price is still moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart, suggesting a bullish signal.
Expectations for a higher increase if it continues to surpass last week's level, it will record new highs again.
The target is around 1.30000 to be achieved as the next focus zone for the price.
However, if it moves down below the 1.29000 level, it is likely to be an early signal for the start of a decline in prices.
After the bearish movement begins, the price will head towards the 1.28000 zone as the closest target to be tested.
Furthermore, the decline in prices is expected to approach the focus zone in late February trading, which is around 1.27000.
