The price movement on the GBP/USD currency pair chart again showed a rebound yesterday driven by the depreciation of the US dollar after a dovish -toned speech by Federal Reserve (Fed) Chairman Jerome Powell.
Despite rising inflation, Powell sees a preference for the still volatile employment sector and hints that the central bank will continue to maintain a loose policy in an effort to support the recovery of the U.S. economy.
The price on the GBP/USD chart has managed to rise from the 1.38000 level driven by the weak US dollar while the Pound Sterling is still seen as risky.
However, the impending period of the reopening of the UK economy is seen to provide little support for the Pound.
The rally in the New York session yesterday however failed to reach the resistance level of 1.39000 in the SBR zone (support become resistance) before declining back to the level of 1.38300 continuing the Asian session trading on Thursday morning.
If the US dollar moves weaker against the Pound, the price is likely to rise testing the 1.39000 zone again after a few weeks of prices failing to break through that zone.
A higher rise is seen to lead to the next focus zone at the 1.40000 level.
On the other hand if the price falls lower below the support level of 1.38000, the decline is seen to head to the level around 1.37400 to test the support level of the previous few weeks.
Next, the 1.37000 focus support zone will be targeted for the continued decline of the price.
