The Asian session on Wednesday yesterday saw the price jump on the GBP / USD pair chart to its nearly 3-year high of 1.4200.
In recent weeks investors have been presented with a steady rise in prices following confidence in the Pound Sterling.
In fact, the series of price increases has lasted since September trade last year.
After the good development of vaccine distribution in the UK, the latest developments continue to make investors optimistic when UK Prime Minister Boris Johnson presented a plan to loosen sanctions that will be carried out in 4 stages until the final phase is expected to open all sectors of the economy.
Therefore the price on the GBP / USD chart continues to maintain the bullish momentum until this week in addition to continuing to hunt for the latest highs.
The continued rise in prices is expected to lead to a high of around 1.43000 in addition to the US dollar depreciation factor which will continue to support the price increase.
However, if observed after the price reached the level of 1.42000 in the Asian session yesterday, the price returned to the level of 1.41000 in the RBS zone (resistance become support).
The zone as well as the Moving Average 50 (MA50) support level over the 1 hour time frame supported the price from falling lower.
Investors need to be wary of expected price declines when the Deputy Governor of the central bank of England (BOE) warns that the high Pound value could adversely affect inflation in the UK.
So, this factor could very well be the trigger for the beginning of the Pound Sterling depreciation in the market.
Prices that fall below the 1.41000 level will lead to a lower support level at 1.4000.
A lower decline is seen to return to the RBS 1.38300 zone which managed to support last week's bullish rise.
