GBPUSD is trending higher inside a rising channel on its 1-hour time frame, and price is currently testing the resistance. If it holds, price could fall back to the mid-channel area of interest at the 1.4000 major psychological mark.

A larger dip could fall to the channel bottom closer to the 1.3900 mark near the 200 SMA dynamic support. On the subject of moving averages, the 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support levels are more likely to hold than to break.

Stochastic is heading lower to indicate a return in bearish pressure. The oscillator made lower highs while price had higher highs, creating a bearish divergence as well.

RSI is also heading south from the overbought zone to show that sellers are taking over while buyers need to take a break.

The British pound enjoyed strong upside last week as the vaccine rollout program appears to be making progress in curbing the spread of the virus. This could continue to prop the U.K. currency higher throughout the week, especially since there are no major reports on deck.

The jobs release might still be worth watching, though, especially since this could generate some dips. An increase of 35K in joblessness might be reported for January, but the average earnings index is expected to show a strong improvement for the period ending in December.

Note, however, that the UK government announced stricter lockdown measures late last year that may have factored into increased unemployment and lower wages.

As for the US dollar, there are also no major reports on deck, so it could be all about market sentiment. Risk-on flows could lead safe-havens to slide, which could mean more downside for the US currency.