The price movement on the chart of the GBP/USD currency pair continued the rise in trading that continued during the Asian market session to the latest highs.
The price has managed to overcome last week’s high level at 1.41600 which was a failed resistance when tested at the beginning of the week.
The pound sterling is seen to have an advantage against the US dollar which moved weaker earlier in the week with expectations for interest rates in the United States (US) to remain low for a longer period.
Developments are improving in the UK after the economic reopening move. The easing of movement restrictions in the UK is also seen to continue to drive the economic recovery as well as boost investor confidence in the Pound Sterling.
Last week saw the price drop to the RBS (resistance become support) zone of 1.40000 before rising again at the weekend following the depreciation of the US dollar after disappointing US retail sales data.
The price moving back above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame has signaled for a reversal bullish trend for the GBP/USD chart.
After an early week’s rise above the 1.41000 level, trading that resumed this morning’s Asian session has continued its rise to head to the 1.42000 resistance level.
That level was a resistance when tested at the end of January and is also the highest level reached by the price since April 2018.
If the price continues to rise above that level, the price will record the latest 3 -year high with the expectation to reach the level around 1.43000.
On the other hand, if the price fails to break the resistance of 1.42000, the price will decline back to the focus level of 1.41000 or the lower decline returns back to the RBS 1.40000 zone.
Investors will evaluate the price reaction in the zone to signal the direction of further price movements.
This week, investors will also need to be vigilant for the movement of the Pound ahead of the UK jobs data report as well as UK inflation data.
