The bullish pattern on the chart of the GBP/USD currency pair was successfully maintained earlier this week after the trend change signal last week.
Investors however remained cautious for the Pound’s still-risk-laden movement, where the price hikes exhibited were seen to be more driven by the depreciating US dollar factor ahead of the outcome of the FOMC meeting.
Although there has been a decline in the number of daily infection cases in the UK, the development of Delta variant Covid-19 transmission remains a major concern hampering economic recovery measures.
Last week, it can be seen that the price managed to jump from the support level of 1.36000 past the level of 1.37000 and almost reached the level of 1.38000 in the SBR zone (support become resistance).
Continuing at the beginning of this week's trading yesterday, the price continued to rise above the 1.38000 level to the 1.38000 level before the price moved slowly in the zone until the Asian session this morning (Tuesday).
The price increase is expected to head to the resistance zone 1.39000-1.39200. This zone failed to break the price during trading a few weeks ago.
Passing that zone will push the price higher towards the focus resistance zone at 1.40000.
If the price fall occurs again, the level of 1.37000 is expected to support the rise again.
On the other hand if the price stays plummeting lower, last week's support level at 1.36000 will be tested again.
A drop below that level will be the latest low since January trading.
