The Pound Sterling became among the major currencies in the market with an outstanding performance with the improvement exhibited until yesterday’s New York session trading.
Supporting the Pound’s strengthening was UK inflation data published yesterday recording an increase to 7.0% from 6.2% previously, the highest rate for 30 years.
However, when the data was published in the European session yesterday, the initial reaction of the Pound was not very encouraging.
The more obvious surge began at the opening of the New York session which also took advantage of the weakness of the US dollar.
On the price chart of the GBP/USD pair, the price hovering at the support zone of 1.3000 yesterday has then surged to pass the expected resistance level at 1.31000 at the end of the New York session.
Investors have seen signals for a bullish trend change after the price increase moving above the Moving Average 50 (MA50) level on the 1 -hour time frame.
The jump of around 120 pips continued in the Asian session this morning (Thursday) with the next target of the price is to go to the SBR zone (support become resistance) at 1.31700-1.3200.
But beware if the US dollar resumes a re -strengthening pace that could plunge prices.
Should the price decline again, the support zone at 1.3000 will remain the main zone to be tested by the price.
If the zone finally fails to contain the lower fall, the next decline is seen to be heading around the 1.29000 level to record the latest lows.
