The price chart of the GBP/USD currency pair yesterday again displayed a bullish pattern, reversing the direction of movement at the close of last week's trade which made it bearish.
Although the Pound is still traded at risk, the price managed to show a daily increase yesterday of around 120 pips following the uncertain movement of the US dollar ahead of the United States (US) inflation data published tonight.
The US dollar was seen moving a little weak at the beginning of the week influenced by the market sentiment factor that eased back from the tensions between the US and China previously regarding flying objects hovering in the airspace of their respective countries.
However, the US military believes that the flying object is not from China.
Now the focus of the market will be directed to the US inflation data tonight, but before that the UK employment data report will first be given attention in the European session shortly.
On the GBP/USD chart yesterday, the price initially hovered slowly at the 1.20300 level before surging up to a high of 1.21500.
The surge was also seen to cross the 1.21000 level and break through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart for an early signal of bullish price movement.
The price increase if it continues is seen to test the resistance at the 1.22000 zone which failed to break through last week's increase.
After successfully breaking through, the rise is expected to lead to higher concentration levels such as the 1.23000 level or to the 1.24000 resistance zone.
On the other hand, if there is a price dive below the 1.21000 level and MA50, it will be a bearish signal for the price to resume the downward pattern of last week.
The price decline is seen to be heading towards the 1.22000 zone and could surpass the level reached last week to record the latest 6-week low.
