The GBP/USD currency pair's chart movement on Friday recorded a daily increase of around 180 pips.
The continued price increase has been driven by the depreciation of the US dollar in the market due to pressure on the United States (US) economy as the global tariff war heats up.
After President Donald Trump imposed tariffs on China as high as 145%, Beijing also increased tariffs on US imported goods to 125%.
In addition to tariff developments, this week's economic data focus will also influence the market with the UK consumer price index (CPI) and US retail sales to be watched.
Despite a price pullback on the GBP/USD chart at the close of last week, the price has shown a rebound above the 1.31000 level to continue trading at the opening of the week.
If last week's high is successfully overcome, the price will continue to rise towards the 1.32000 resistance zone that was tested in early April trading.
A continued bullish pattern will push the price to a new 6-month high with a target moving to 1.33000.
However, if the bullish pattern fails to continue, investors will watch for a signal for a trend change.
A decline below 1.31000 again could potentially push the price to 1.30000.
Further, a more bearish signal would see the price move lower to 1.29000 or 1.28000.
