The pound currency has returned to its original strengthening base?
On the price chart the GBP/USD currency pair overnight saw a daily gain of around 70 pips indicating the Pound is trading more than the US dollar in an uncertain market mood.
Traders assess the risk of the Omicron contagion issue has subsided, making safe-haven currencies including the US dollar weaker and giving other major currencies room to increase.
Opportunities are used by the Pound on the depreciation of the US dollar after being under pressure since trading at the end of last week.
After the price on the GBP/USD chart tested the 1.32000-1.31700 support zone at the start of the week, gains have been on display overnight from the 1.32000 level to the 1.32700 level thus ending the New York session.
The gains have also broken the 50 Moving Average (MA50) barrier on the 1 hour timeframe to signal a change in the original bullish trend.
A continued advance will test the level of the immediate resistance at 1.33000 before testing also the level of the high reached last week in the 1.33600 zone.
Moving on, the important resistance zone at 1.34000 is seen as a support zone to test on a higher bull run.
As for the pattern of price decline as well, the support zone 1.32000-1.31700 will continue to be tested after 3 weeks the price was successfully blocked from making further declines.
A decline that manages to break through the support zone will record the latest low again for 2021, possibly heading to the level around 1.31000.
