Since last week, the price displayed on the chart of the GBP/USD currency pair has completed over 300 pips of gains so continue on today’s trading.
The outcome of the FOMC meeting earlier this morning which saw the US dollar depreciate is seen to be a factor to continue to support the bullish pattern.
The Federal Reserve (Fed) is seen to continue to maintain a loose policy for a longer period and has given no indication that a reduction in bond purchases (tapering) will be implemented in the near future.
Factors in the decline in infection cases in the UK as well as the reopening of the economy gave support to the movement of the Pound Sterling although investors remained wary of the risks plaguing the British currency.
The situation of the depreciation of the US dollar after the FOMC meeting will open more room for the price to move in a bullish trend after the rise has reached the resistance zone at 1.39000.
This morning's Asian session saw price movements continue to rise despite a slower momentum. It is expected that the next session will see more aggressive movement.
The continued rise will lead to the focus level that was previously targeted by analysts at the 1.40000 zone.
Reaching that level will record the latest high of the price in 5 weeks after last tested at the end of last June.
If the price makes a decline again, focus on the focus zone such as at 1.38300-1.38000 and the price reaction on that zone.
If the bearish trend starts again, the support levels at 1.37000 and 1.36000 which were important levels last week will be given attention by investors.
