GBP/USD Retraces Last Week's Highs

<p>&nbsp;The price chart of the GBP/USD currency pair yesterday was seen to have managed to reach the highs again when it surged on the release of the NFP data last Friday despite moving slowly at first.</p><p><br /></p><p>The price drop was shown in the Asian session until the opening of the European session yesterday to around 1.27200 before the increase was shown in the New York session.</p><p><br /></p><p>The price was also seen testing the 1-hour Moving Average 50 (MA50) support level on the GBP/USD chart and then surged, signaling the price movement is still in a bullish situation.</p><p><br /></p><p><br /></p><p><br /></p><p>The upswing towards the end of the New York session has re-reached the 1.27900 high previously reached last Friday, but the price has yet to break through it.</p><p><br /></p><p>The price even retreated slightly on trades that continued into the Asian session this morning (Tuesday) while being supported by the MA50 level.</p><p><br /></p><p>Investors are waiting if there is a signal for the price movement to turn bearish following the statement by members of the Federal Reserve (Fed) who have a hawkish tone, potentially strengthening the US dollar and pushing prices down.</p><p><br /></p><p><br /></p><p>United States (US) inflation data and UK economic growth data are expected to be published at the end of the week which could have an impact on the movement of both currencies.</p><p><br /></p><p>For the expectation that if the price increase continues, the price that passes the resistance at 1.27900-1.28000 will continue climbing higher towards the concentration level of 1.29000.</p><p><br /></p><p>A break above that level expects the price to rise again to reach the previous resistance level at 1.30000.</p><p><br /></p><p>However, if the price plunges below the MA50 support, it will be an early sign for a bearish price movement and the closest support level at 1.27000 will be tested.</p><p><br /></p><p>If it fails to contain the decline lower, the price could reach around 1.26000 or lower to record a new 6-week low.</p>