Can GBP/USD 'Fly' This Week?

<p>&nbsp;The price movement on the chart of the GBP/USD currency pair is still flat at the beginning of this week continuing last week's trading pattern which moved in the zone range of 1.28000 to 1.27000.</p><p><br /></p><p>The 1.27000 level remains a current support for the price from experiencing a more severe fall, but the price has not yet reached the 1.28000 level.</p><p><br /></p><p>As of yesterday's New York session, the price only reached the 1.27650 level and a slight increase higher was displayed in continued trading at the beginning of the Asian session this morning (Tuesday).</p><p><br /></p><p>This was driven by the weak movement of the US dollar on Monday yesterday although the market sentiment is still considered risky.</p><p><br /></p><p>Investors are likely to take extra precautions this week ahead of the annual Jackson Hole Symposium.</p><p><br /></p><p>Both the Pound and the US dollar are seen to be influenced by the release of European and United States (US) manufacturing and services PMI data first on Wednesday before the focus shifts to the event which starts on Friday.</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>Meanwhile, price movements will be expected to be volatile and risky for investors until a clearer indication emerges.</p><p><br /></p><p>For the expectation of a price increase, the 1.28000 zone will be tested which has been a resistance for the price for the last few weeks.</p><p><br /></p><p>If successful, the price will continue its climb towards the next concentration level at 1.29000.</p><p><br /></p><p>On the other hand, if the price falls back below the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, it will signal an early bearish move.</p><p><br /></p><p>The drop will once again test the 1.27000 support and if finally broken through, the 1.26000 zone will be the next target for an extended bearish pattern.</p>