GBP/USD Reaches Another 8 Week High!

 Like other major currencies, the Pound also took the opportunity to strengthen against the depreciating US dollar following the market’s reaction to Jerome Powell’s speech yesterday.

Powell made a less hawkish statement than ever before despite still stating that the Federal Reserve (Fed) is still on track for the policy tightening phase.

On the price chart of the GBP/USD pair, the price has made a rise to the latest high level again after successfully breaking the height range tested since last week which is in the 1.36000 zone.

As can be seen in yesterday's price movement, the price was supported at the level of 1.35700 on the initial decline before continuing the rise towards the level of 1.36500 continuing into the Asian session this morning (Wednesday).

The price movement is still in a bullish trend supported by the support level of Moving Average 50 (MA50) on the 1 hour time frame which is an indicator for the bullish pattern.

The upside is likely to break the 1.36500 resistance zone if the US dollar continues to move weakly in the market.

The target level for higher gains is seen at around 1.37400 for the continued bullish trend.

On the other hand, if the US dollar goes back to ‘rage’ again, the price will be rebounded with the support levels at 1.35700 and 1.35000 before it will be the focus of attention again.

The lower decline will continue to signal a change in the bearish trend for Pound trading.

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