Investors are examining the interesting pattern of price movements displayed on the chart of the GBP/USD currency pair by forming a ‘V’ pattern following last week’s significant price decline and this week’s significant price increase.
Last week's decline following pressure on the Pound saw the price plunge from the 155.00 level to the 151.300 level with over 300 pips of decline recorded.
But the Pound again showed an increase in value earlier in the week as the Yen resumed trading on Wednesday above the 154.00 price level.
The Yen moved weaker in the market this week following weak demand for safe-haven assets following recovering sentiment on the Wall Street stock market this week.
With a positive report with UK Health Minister Matt Hancock's statement on the positive Covid-19 related data, will support the Pound to push the price on the GBP/JPY chart to higher levels.
The rally continued at the beginning of the European session today heading to the focus level at 154.800 and is likely to pass that level for a bullish trend signal.
The higher rise is expected to head up to the resistance zone at 156,000 which was tested last May but failed to break.
If the price drops again below the 154.00 level, investors will expect a return of the price to continue last week’s series of declines.
The 152.00 level is seen to be the focus before the price drops to test the lows reached at 151.300 earlier in the week.
Next, the support zone at 150.600 will be the latest target if the bearish series continues.
