The economic development in the UK is becoming more rapid with the actions of the central bank and the government in an effort to restore the economy so that investors are excited.
After the market witnessed a sharp drop in the Pound at the opening of trading earlier in the week to an all-time-low, the central bank reportedly intervened in the market yesterday with the aim of stabilizing the economic situation.
The Bank of England (BOE) announced the purchase of bonds with a maturity of 20 years to have a positive effect on the UK economy.
The initial reaction shows that the Pound is rising again, but analysts warn that the effect of the increase in the value of the Pound may be temporary and there is still the potential to experience a more severe decline after this.
On the price chart of the GBP/USD currency pair, the price was seen showing a surge of up to 400 pips yesterday, with an increase from the 1.05400 level until it reached a high of 1.09000 at the end of the New York session.
There are early signals for a change in price direction after the surge has crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the price chart which has been a price barrier since last week.
Continued trading in the Asian session today (Thursday), the price showed a decline but still hovered above the MA50 support level.
If the price continues yesterday's rising pattern, it is likely that the price can go up to the 1.11000 level which will be the latest resistance for the price.
Next, to continue the bullish trend movement, the price can reach back to previous focus levels such as 1.12000 and 1.13000.
However, if the strengthening of the Pound fails to be maintained, the price can fall again to continue moving in the previous bearish trend.
A break below the MA50 support level would expect the price to head back to the 1.04000 zone which is the all time low zone ever recorded.
