The price movement on the GBP/USD chart showed a bullish pattern at the beginning of the week with an unexpected surge in the value of the Pound following the negative sentiment that plagued the British currency earlier.
With the US dollar depreciating factor following the latest report on a statement by Federal Reserve (Fed) Chairman Jerome Powell earlier this morning, it is seen to support the price increase on the GBP/USD chart.
In addition, the Pound was also supported by the latest report with a statement by UK Health Minister Matt Hancock who saw the data reading related to the Covid-19 case as positive and expected plans for the economic reopening on July 19 to go smoothly.
If you observe the price movement on the GBP/USD chart, the price has managed to rebound from the support zone of 1.38000.
After the rise to the level of 1.39300, the price declined again yesterday testing the support level of the Moving Average 50 (MA50) on the 1 hour time frame of the price movement.
However, the level is seen to successfully support the price increase to record the latest high in the New York session yesterday around 1.39600.
This bullish pattern is seen to push the price towards the 1.4000 level to test the resistance.
Exceeding that level will then lead to the SBR zone (support become resistance) 1.41000 which is the price support level before the price plunges during the FOMC meeting.
However, if the price declines below the 1.39000 level, the 1.38000 support zone is seen to be back in focus again.
A lower decline in the bearish trend beyond the 1.38000 support will be targeted to reach the 1.37000 level as well.
