Last weeks dollar weakness is probably an indication of whats to be expected from the major US economic reports this week. The Sterling's recent resurgence is largely on the back of Brexit optimism. I think its important to emphasize this concept: There is a premium to pay for certainty and safety!
The 1.325 zone is the one to watch here. A clear rejection @ or below this zone is a good sell opportunity, with a profit target around the 1.27 zone. If there's conviction above this level, sentiment should kick in and form a higher high. A price target for an upside move is more murky as there's two resistance zones (1.34 and 1.353) to over come before a big leg up.
Personally, until this pair can convincingly break above the 1.325 zone, I'm staying on this pair and taking a wait and see approach.