Positive for the currency this week, good developments in the UK continue to boost investor confidence in the country’s economic recovery.
With an ongoing vaccination program, the UK economy is expected to recover and be fully operational in the near term.
Also driven by the weakening factor of the US dollar, the Pound Sterling managed to hit the latest high on the chart of the GBP/USD currency pair in earlier trading this week.
If examined, the price has been testing the resistance zone of 1.42000 for several weeks but it is difficult to break it before turning back.
A surge beyond the zone was witnessed in Asian session trading this morning (Tuesday) as current market sentiment remained in favor of the Pound to dominate against the US dollar.
As of 11.00 am local time, the price has managed to reach a rise to the level of around 1.42500, slightly above the high level reached last February which is the highest level ever reached since April 2018.
Expectations of a higher price increase will head to the 1.43000 level to continue to record the latest highs for the 3 -year trading period.
The decline will be supported at the level of 1.42000 which will form the latest RBS (resistance become support) zone of the price.
If the price drops lower again in that zone, investors may be prepared for a lower decline of the price towards the RBS 1.41000 zone.
Next, the price moving back in a bearish trend will head to the 1.4000 focus level to be tested.
