The performance exhibited by the Pound Sterling towards the end of the week somewhat surprised the market when it managed to strengthen again after initially expected to continue to decline.
The announcement of the purchase of government bonds by the Bank of England (BOE), did not weaken the Pound, but instead continued to push the British currency up.
Analysts see the UK government's intervention in the market by announcing a mega-scale tax cut has fueled expectations for the central bank to be more aggressive in implementing monetary policy tightening.
However, for the time being, the Pound is still excellent showing a strengthening compared to the US dollar which weakened weakly in the closing trading of the third quarter of this year 2022.
It can be observed that the price on the chart of the GBP/USD currency pair has made a jump from the all-time low zone of 1.04000 up to the level of 1.12000 today, with a record increase of more than 800 pips!
On Thursday's trading yesterday, the price showed a decline in the Asian session but was supported by the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart before the price continued to jump around 350 pips to the 1.11000 level at the end of the New York session.
The price increase has continued in the Asian session this morning (Friday) to the level of 1.12000 before retreating back to around 1.11000.
With the displayed pattern, the price looks more likely to continue the rise higher past the 1.12000 resistance and extend to the 1.13000 level before the 1.14500 zone becomes the next focus.
On the other hand, if the price makes a decline, the nearest support zone for the price is seen at around 1.09000 which was previously a resistance for the price.
A further decline after the re-evaluated bearish signal will expect the price to return to the 1.04000 support zone.
