Despite still being plagued by various risks in previous weeks, the Pound Sterling managed to show strength in trading earlier this week.
The situation is seen as contrary to concerns expressed by UK Prime Minister Boris Johnson following an increase in cases of Covid-19 infection of the Delta variant which will continue to affect the economic opening plan.
The previously gloomy strengthening of the US dollar earlier in the week also gave room for the Pound to rebound in the market.
On the price chart of the GBP/USD pair, investors saw a jump of around 150 pips at the beginning of the week from the support zone of 1.38000 to cross the level of 1.39000.
After last week's decline to the 1.38000 support zone, the price rebounded at the beginning of the week and passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the GBP/USD chart making investors wary of early signals of a reversal trend.
After reaching a high of around 1.39350 yesterday, the Asian session this morning (Tuesday) saw the price decline slightly to the level of 1.39000.
If the price continues to rise, the price is seen to test the 1.40000 focus level before the higher upside target is at the SBR (support become resistance) zone of 1.41000 again.
On the other hand, if the bullish situation at the beginning of the week is just a price correction, the price will resume the decline to pass the support zone of 1.38000.
The lower downside target will lead to the level around 1.37000 which is the price support zone in March and April trading last year.
