The Pound re -realized an excellent performance to strengthen after gaining hawkish expectations that the Bank of England (BOE) will probably continue to raise interest rates.
This situation will certainly heat up the market movement when the statement will be finalized at the BOE policy report meeting which will take place in the New York session later.
The expected implementation is aimed at curbing the rise in the UK inflation rate which is now at a critical level which it has already recorded the highest result in 30 years.
But the BOE also had to re -evaluate more carefully as the Omicron variant infection in the UK is still spreading aggressively and it is likely that it may need to re -impose sanctions.
However, the impact of these expectations has already supported the price movement on the GBP/USD chart to present a surge in trading this week.
The surge also broke the Moving Average 50 (MA50) resistance level as well as the trendline resistance to give an initial impression of the trend change signals that are likely to be displayed.
So the closest target to be achieved is at the resistance zone around 1.36000 if the price movement continues to display an excellent performance in making the rise even more impressive.
The next uptrend is likely to see the price move to the resistance level around 1.37460 before being re -evaluated by investors for the next move.
While the RBS (resistance become support) zone of 1.35000 may be the zone that will be tested first if the price declines again before it is expected to reach the level of 1.33600 again.
