The depreciation of the US dollar until the end of the week has managed to push the price higher on the chart of the GBP/USD currency pair on Thursday yesterday.
Even so, Pound investors are likely to be wary of anticipating pressure on the British currency following a tax hike report to be announced by UK Prime Minister Boris Johnson.
This situation is likely to trigger turmoil in the economy when PM Johnson will be seen breaking his promises as set out in his previous election campaign manifesto if the move is implemented.
Yet while the focus is on the US NFP jobs report tonight, the US dollar continues to move lower in support of higher price increases on the GBP/USD chart.
The bulls have finally managed to break the resistance of 1.38000 in the SBR zone (support become resistance) and recorded the latest 2 -week high.
After closing the New York session around the high of 1.38400, the price is expected to continue rising towards the latest focus resistance level at 1.39000.
Touching such an important level will record the latest price high for the 4 -week trading period.
On the other hand, if the price returns to decline, the level of 1.38000 will be the support level for the price to form the latest RBS (resistance become support) zone on the price chart.
A lower decline from the zone will return a bearish signal and the price may decline back to the support zone of 1.37000.
The continued decline is expected to lead to the main support zone which was also tested in last August's trade at 1.36000.
