The bullish price pattern continued on the GBP/USD currency pair chart at the opening of the week due to the continued depreciation of the US dollar.
At the close of trading last week, the price moved slowly approaching the 1.33000 level which is a resistance zone for the price.
However, in the Asian session this morning (Monday), the price increase continued higher beyond the resistance and headed towards a new high around 1.34000.
The continued depreciation of the US dollar is increasingly opening up room for an increase in the value of the Pound despite published data showing pressure on the UK economy.
The latest UK inflation reading last week showed a decline with expectations of the retail sales rate also coming in with a declining reading this week.
However, the Pound managed to gain as the US dollar continued to weaken under the pressure of the global tariff war.
On the GBP/USD chart, the price remained in a bullish trend with movement above the Moving Average 50 (MA50) line on the 1-hour time frame.
The latest price increase recorded a new 7-month high that is close to the previous high of around 1.34300 in September 2024.
If the upward trend continues and also surpasses that high, the price will record a 3-year high with a target of 1.35000.
However, if there is a pullback, the price is likely to retest the zone around 1.33000, which is the resistance that was successfully broken this morning.
For further declines, the price will return to track last week's support level at 1.32000.
