The rally on the GBP/USD chart appears to be higher than expected even though the Pound Sterling remains in a risky trading group.
The situation is seen to be more driven by the depreciation of the US dollar heading into the weekend after market sentiment slightly recovered as well as the US unemployment claims data published in the New York session yesterday rose again.
Towards the weekend, the price has risen around 200 pips from the support level of 1.36000 towards the SBR zone (support become resistance) at 1.38000.
On Wednesday, the price has surged past the Moving Average 50 (MA50) barrier on the 1 hour time frame of the price movement for a bullish signal.
Further, in yesterday's trading the price continued the surge supported at the level of 1.37000 towards the level of 1.38000 to maintain the bullish pattern.
The European and New York sessions today (Friday) will affect price movements as manufacturing and services sector data in the UK and US for July will be the focus.
If the price manages to break the zone of 1.38000-1.38300, the movement on the bullish trend is seen to retest the resistance zone at 1.39000-1.39200.
If the price still manages to continue rising beyond the zone, the focus level at 1.4000 will be the main target of the price.
However, if the price plummets again, the 1.37000 level will be tested first whether the zone is able to support the price increase or break lower.
A continued decline will push the price back to the weekly support level at 1.36000 again.
For lower declines, the 1.35000 support zone will be the target to record the latest lows since January trading.
