The pound sterling became the main focus of the New York session yesterday as investors saw a resurgence in price after the British currency moved weakly since the beginning of the week.
The market has reacted to the decision of the monetary policy meeting of the central bank of England which is seen as hawkish.
The Bank of England (BOE) maintained the interest rate unchanged at a low of 0.10% for the first meeting of 2021.
Yet more in focus is the indication by the central bank that the move to implement negative interest rates is seen to go further to become an option for at least a period of 6 months.
This has re-injected the strengthening for the Pound and investors saw a surge of up to 130 pips on the price chart of the GBP / USD pair once the results of the BOE meeting were published.
If observed, the price movement in the previous session saw the price continue the downward trend up past the support level of 1.36000.
However, after reaching the level of around 1.35650, the price rose to almost reach the level of 1.37000 again in the resistance zone for trading in previous weeks.
Prices are also seen to have broken the Moving Average 50 (MA50) barrier over the 1 hour time frame of price movement, but investors are wary for clearer price movement directions.
Until the trade continues into the Asian session, the price returns flat hovering below the 1.37000 level.
A successful price hike above the level of 1.37000 will re-test the high level of 1.37500 which still failed to break after being tested several times for several weeks.
For the latest highs, the price zone of 1.38300 is seen to be among the focal levels or targets of continued price increases.
On the other hand, if the price resumes the downward trend earlier in the week, the price will return to the support zone of 1.36000 and also the low level reached yesterday.
Next, the RBS zone (resistance become support) at 1.35300 and also the level of 1.35000 is seen as a destination focused on price decline.
In addition to the US NFP employment report, investors will also focus on a speech by BOE Governor Andrew Bailey for new leads.
