The Trend Is Still Bullish, But GBP/USD's Rise Is Blocked At The $1.24000 Level


 The price chart of the GBP/USD currency pair showed a bullish pattern again on Thursday yesterday, maintaining the bullish trend movement.

Last Wednesday, the price managed to jump slightly above the 1.24000 level to record the latest 5-week high before showing a decline again in the New York session that day.

The price decline however still did not cross the Moving Average 50 (MA50) support level on the 1-hour time frame movement on the GBP/USD chart, indicating that there has not been a trend change.

The US dollar's dismal move yesterday showed a decline towards the end of the New York session, pushing prices higher after investors saw prices flat in the previous Asian and European sessions.

The pound is still expected to outperform the US dollar following the release of UK inflation data which is still at a high level, expecting the central bank of England (BOE) to continue tightening its policy.

A rebound in prices is seen heading towards the 1.24000 resistance level, before the price slows below that level again at the opening of the Asian session this morning (Friday).

The price is expected to continue its rise after breaking through the resistance of 1.24000 before the next target towards the height of 1.25000.

Successfully reaching that level will record the price's latest high for the 7-month trading period.

However, if the 1.24000 level remains preventing the price from rising higher, instead the price makes a further decline, the 1.23000 zone is seen to be tested by the price.

A drop lower beyond that zone is seen to lead to the next concentration zone at 1.22000.

Investors will be more cautious at the end with the expectation of volatile price movements and adding more risk to trading.