The pound sterling shocked investors following a significant spike in New York session trading yesterday despite still being in the midst of the Covid-19 outbreak that still plagued the UK.
On the GBP / USD pair price chart, the price has jumped around 140 pips from the support level of 1.28100 to the high of 1.29400 and also surpassed the height reached on Monday.
The significant jump was also supported by the depreciation of the US dollar in the market after investors regained confidence in the economic recovery based on positive data readings as well as the development of negotiations for the implementation of the US economic stimulus package.
The progress of the Brexit negotiations will also continue to be monitored and will react to the Pound Sterling movement.
Price movements in the Asian session this morning were slow but prices were showing signs of continuing to rise.
A higher rise is seen to lead to the level of 1.30000 for the price to retest the resistance level.
If the price manages to pass the resistance, the expected increase in the next price is likely to reach up to 100-200 pips towards the resistance zone 1.32000.
On the other hand, if the risk returns to put pressure on the Pound, the price will return below the 1.29000 level and also test the Moving Average 50 (MA50) support level within the 1 hour time frame of the price movement.
The lower decline will return to the previous focus levels of 1.27600 and then the support zone of 1.26700.
