The re -depreciation of the US dollar in the market especially during the New York session yesterday has given other major currencies in the market the opportunity to trade upwards including the Pound Sterling.
The price movement on the chart of the GBP/USD currency pair started to show a surge in the European session yesterday after the horizontal movement of the price for several sessions since the beginning of the week.
In Tuesday's trading yesterday, the price has managed to make a rise past the level of 1.38300 and also the support level of Moving Average 50 (MA50) on the 1 -hour time frame for the initial signal of the bullish trend.
The Pound is supported by the positive development of vaccination programs in the UK in addition to the Governor of the central bank of England who is also optimistic about the current economic recovery.
Yesterday’s price rally hit a daily high of around 1.39250 before closing the New York session trading slightly lower again.
Continuing the Asian session this morning, the price eased slightly lower with the US dollar moving back up.
However, the price hovering in the focus zone is seen to test the MA50 support level for the next price movement signal.
The rally is expected to continue higher past yesterday's high to head back to the resistance level of 1.40000.
The resistance level failed to be broken after being tested several times in last week’s trading before the market saw a lower price fall.
If the price continues to decline again, the support zone at 1.37000 is seen to be the main focus destination of the price.
Investors will also be vigilant ahead of the UK Gross Domestic Product data report over the weekend which is among the central bank’s focus data.
