The pound continued to trade strongly against the US dollar in Thursday's trade yesterday continuing the bullish pattern displayed last Tuesday.
Policy developments by the government and the central bank in the UK continue to attract the attention of the market and still affect the uncertain movement of the Pound currency.
After the tax cut plan did not go ahead, the market was awaiting an announcement by Chancellor of the Exchequer Kwasi Kwarteng, but he said more details would be presented at the end of October.
Meanwhile, the situation of the depreciation of the US dollar towards the end of this week after the market digested the release of inflation data from the United States (US) also gave room for the Pound to rise.
On the chart of the GBP/USD currency pair, the price is seen to have displayed a daily increase of around 320 pips yesterday!
The price that started the rally at the beginning of the European session broke the initial resistance at 1.11000 and then continued the climb past several concentration levels including 1.12000 and 1.13000.
The latest weekly high for the week was recorded at 1.13800 in the New York session yesterday before prices started to level off into the Asian session this morning (Friday) around 1.13000.
After a surge past the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart, the price is expected to continue climbing higher with a target towards the resistance zone at 1.15000.
Passing the height of the previous week, the price could record the latest 4-week high with the next target being at the 1.16000 zone.
However, be alert if prices plunge again due to political and financial uncertainty in the UK which could put pressure on the British currency.
The price will drop back to the concentration levels of 1.12000 and 1.11000 before going to the RBS (resistance becomes support) zone at 1.09000 after investors evaluate the signal of a change in the price trend.
