The price chart of the GBP/USD pair has remained positive since last week until the end of this week's trading.
Prices showed a bullish pattern supported by the depreciation factor of the US dollar in the market although investors remained wary of Pound Sterling trading.
The US, which continued to experience a significant fall in value this week, was the main driver of the price increase on the GBP/USD chart by almost 400 pips in just 2 weeks.
Despite the risks, the Pound is still supported by factors of the reopening of the UK economy and a decline in daily infection case numbers for the week which slightly relieved previous pressure.
After the price surge on the GBP/USD chart yesterday passed the resistance zone of 1.39000-1.39200, the price continued to rise recording yesterday’s daily high at around 1.39800 before flattening towards the end of the New York session.
With the movement remaining moving above the support level of Moving Average 50 (MA50) on the 1 hour time frame gives a positive signal for the bullish trend of the price.
The resistance zone at 1.40000 is expected to be tested by the price and investors will evaluate the price reaction at that critical zone which will signal the direction of further price movement.
Higher upside targets beyond that level will be pushed towards the 1.41000 high.
However, if the price plummets again below the 1.39000 level, investors will be wary of lower declines.
A move below the MA50 support level will also signal an early end of the price bullish trend.
The decline is expected to return to the RBS zone (resistance become support) 1.38300-1.38000.
