Although currency markets are absorbing the risk of renewed Russia-Ukraine geopolitical tensions, the Pound managed to hold on to its brilliant performance to show gains towards the end of the New York session in overnight trading.
The pound is still underpinned by UK inflation sentiment which rose to a 30-year high based on data published last Wednesday.
The US dollar also failed to put significant pressure on the Pound's trading overnight even though investors were waiting for the US dollar to strengthen in a negative market mood again.
On the price chart of the GBP/USD currency pair, the price has shown an increase so that it reached a high of around 1.36370 in the New York session last night showing the Pound more dominant over the US dollar.
The price is still moving in a bullish trend with a temporary decline in the Asian session overnight just testing the level of support for the 50 Moving Average (MA50) on the 1-hour timeframe on the GBP/USD chart.
The end of the New York session so that it continued in the Asian session this morning (Friday) showed an initial decline from the high level reached, but investors still see prices will continue to rise higher.
The next target level is at 1.36500 which becomes an important hurdle for the price to break before giving more clear bullish signals.
For continued gains, a high level of around 1.37400 will be reached which became the resistance zone in January's trading.
However, if the initial price decline occurs, the price moving below the MA50 level and shrinking lower than the 1.35700 level will signal an initial bearish trend.
The continued decline will test the RBS zone (resistance become support) 1.3500 which is still able to stem the fall in prices for trading in the last few weeks.
