The pound traded higher from a 5-week low against the US dollar as the direction of price movements began to change on Wednesday.
The US dollar, which showed a strengthening last Tuesday, returned to moving weakly yesterday with the focus directed at the publication of the minutes of the FOMC meeting.
There was no significant reaction by the US dollar after the minutes were published and it remained moving gloomy after following the ISM survey data of the manufacturing sector in the United States (US) published earlier.
Market sentiment was slightly restored by the news that China is now planning to partially ease Australia's previous coal import restrictions, and this situation is also seen to push the US dollar back down.
On the price chart of the GBP/USD currency pair, the price has managed to bounce back after the fall last Tuesday reaching around the 1.19000 level.
However, after yesterday's price increase managed to pass the 1.2000 zone again, the price hovered at the height of 1.20700 in the New York session yesterday with a lackluster price reaction after the minutes of the FOMC meeting were published.
The price still remains below the 1.21000 resistance zone and if the rise continues today (Thursday), it is likely that the zone will be successfully broken.
Price continuing to move higher is seen to target the next concentration zone at 1.21000.
On the other hand, if the price decline occurs again, the 1.2000 zone as a support zone for the price will be tested again.
If it is broken, the price that continues to fall lower will return to the 1.1900 zone which is the latest support zone for the price.
