Looking at the price chart of the GBP/USD pair, the price seems to have continued to surge aggressively during the New York session yesterday (Wednesday) to re -test the 4 -week high around 1.38300.
However, the price movement was seen exhibiting a slight decline at the opening of the European session around 70 pips following the UK inflation data report published with a disappointing reading.
The price is once again displaying an attempt to retest the 1.38300 high and is still moving above the Moving Average 50 (MA50) barrier level on the 1 hour time frame to remain bullish.
In contrast, the Pound, although the release of weak UK inflation data reports, did not hamper the currency's efforts to expand its dominance and continue to strengthen.
The Governor of the Bank of England (BOE), Andrew Bailey, which is expected to increase interest rates as well as tightening policy policies are still the reasons and factors that have driven the rise in the price of the Pound.
If the price movement on the GBP/USD chart manages to break the highs, the price is expected to head to the initial resistance zone at 1.39000 to form the HH (higher high) pattern.
The maintenance of the price spike in turn is likely to test the resistance zone remaining the focus of the past and often curb higher rises to the level of around 1.40000.
The resistance zone at 1.38000 is expected to be tested first before showing a clearer reaction price and may give an early signal of a bearish trend if the price continues to decline.
A decline beyond the zone will also indirectly see the price movement able to reach back to the RBS zone (resistance become support) 1.37000.
