The pound pared losses in September's closing trade last week after breaking a new all-time-low that surpassed the record set in 1985.
Developments in the UK are still being monitored by investors after the central bank raised interest rates, announced the purchase of government bonds, while the government led by Prime Minister Liz Truss launched a mega-scale tax cut plan.
Although the directions between the central bank and the government are somewhat intersected, both are centered on the objective of restoring the economy.
Examining the price movement on the chart of the GBP/USD currency pair last week, the weekly increase was recorded around 900 pips after the record low price was hit at the 1.04000 zone.
After a strong mid-week surge, the price started to move more flat last Friday with the latest resistance at around 1.12000.
Following on from the opening trade earlier this week, the price eased slightly to around 1.11000 but still shows movement in a bullish trend that is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.
If the early October trading is still in favor of a higher increase, the price will pass the resistance at 1.12000 before going to the next target at 1.13000.
An extended rise for a clear bullish trend could push the price to reach the height of 1.14500 which was previously also a price concentration zone.
On the other hand, if the price drops below the 1.11000 level and breaks through the MA50 support level, investors should prepare for a more severe fall in price.
The nearest support zone of the price on the initial decline is seen to be around 1.09000 where at the beginning of last week it was a resistance for the price to make an increase.
Next, the 1.04000 zone, which is the lowest price zone of all time, will be the focus target again for the price bearish trend movement again.
