January 13, 2022

GBP/USD Continues to Rise Again to Reach 11 Week High!

 The price chart of the GBP/USD pair without looking back continues to accelerate to record the latest highs again with the surge displayed yesterday.


The price hike followed investors' initial reaction to the published United States (US) inflation data which recorded the highest figure since 1982!


The US dollar was expected to soar earlier, but the king of the currency moved lower in the market and also paved the way for the Pound to continue to advance.


The price has managed to break the resistance level at 1.36500 registering a daily rise yesterday around 90 pips.


Reaching a high of around 1.37100 at the end of the New York session, the price has recorded its latest high for the 11 -week trading period!




The slow continued price movement in the Asian session this morning (Thursday), prices are expected to move more aggressively in subsequent sessions with the focus to be on the US producer price index (PPI) data.



The price increase if continued is expected to lead to the latest high of 1.37400 which is the focus level in last October's trading.


The price movement will remain in a bullish trend if it is still above the support level of Moving Average 50 (MA50) on the 1 -hour time frame.


Not to mention there are no signs of a price decline happening, but investors may be wary if the US dollar can strengthen again ahead of the release of US PPI data tonight.


If the decline starts, the price is seen to test some support levels, among them at 1.36500 and 1.35700.


The lower decline will lead to last week’s support level at 1.35000 or lower 1.34000.