The UK employment data report published in Tuesday’s European session slightly supported the Pound’s appreciation in the market although it has yet to display a convincing performance.
On the price chart of the GBP/USD pair yesterday, the price has recorded a daily increase of around 80 pips up from the support level of 1.3000 to the level of 1.31000.
The bullish pattern displayed by the price also gave a positive indication to investors for the Pound's rebound ahead of the outcome of the England central bank meeting on Thursday.
The Bank of England (BOE) is expected to raise interest rates from 0.50% to 0.75% for this meeting and will drive the strengthening of the Pound.
But the obstacle that the Pound will face is the expectation for a strengthening US dollar following expectations for an interest rate hike also by the Federal Reserve (Fed) which could limit the Pound's surge.
With the expectation for a rate hike by the two central banks is seen to make price movements more limited. However, the initial reaction following the decision of the meeting will definitely be different.
If the price starts to signal to continue the decline, the support level of 1.3000 will be broken before the price continues to decline towards the level around 1.29000.
The continued decline in prices will continue to record the latest lows since November 2020 trading.
On the other hand, if the price makes a rise to break the resistance at 1.31000, the price increase is expected to continue to test the 1.32000 zone which was the resistance in last week's trading.
For a higher rise, the SBR zone (support become resistance) at 1.33000 will be the next price target that will be targeted in the bullish trend movement.
