The continued depreciation of the US dollar has prompted higher prices on the GBP / USD pair chart this week.
As expected, prices have continued to surge to the latest highs since April 2018 after the previous price resistance zone was successfully penetrated.
The Pound Sterling currency was also supported by the development of the number of cases of Coronavirus infection in the UK which is seen to be showing a declining pattern. Although the case rate is still high, the UK first managed to record daily cases below 100,000 since November last year.
This to some extent supports the price hike after last week's Pound spike driven by central bank comments on negative interest rates.
As can be seen on the GBP / USD price chart yesterday, the price dropped testing the level of 1.37000 before jumping back to the previous highs of around 1.37500.
Continuing the Asian session trading this morning (Tuesday), the price has managed to jump out of the resistance zone and continue to rise towards the level of 1.38000 thus recording the latest high.
The price trend remains bullish with the price moving above the Moving Average 50 (MA50) support level over the 1 hour time frame with the expected level of 1.38300 will be the target.
However, if the price returns again, the level of 1.37000 will be support for the price and form the latest RBS (resistance become support) zone.
A lower downtrend will be seen returning to the 1.36000 level and a bearish trend change will be expected again.
