The Pound Sterling put in a strong performance in early trade yesterday after a dismal decline last week.
This is due to reports related to the Brexit agreement in which the UK and the European Union (EU) are seen to have agreed to amend the Northern Ireland protocol which was previously an obstacle to the agreement of a trade agreement being reached by both parties.
This situation has given support to the resurgence of the value of the Pound in the market, and has also given positive momentum to the Euro currency which has also increased.
In addition, the US dollar currency, which is expected to continue strengthening this week, instead traded lower in the New York session yesterday.
In addition to seeing profit taking activity by investors at the end of February trading, the gloomy United States (US) durable goods order data published yesterday also had the effect of a depreciation of the US dollar.
Examining the price chart of the GBP/USD currency pair, the price which was initially seen to be flat at the support level around 1.19400 then jumped around 140 pips.
Passing the 1.2000 zone again, the price has reached a height of around 1.20600 and started to slow down around that continuing in the trading in the Asian session this morning (Tuesday).
Be the initial signal of a change in the bullish trend on the GBP/USD price chart when the price moves back above the support level of the Moving Average 50 (MA50) on the movement in the 1-hour time frame.
The increase that will continue is seen to approach the level of 1.21000 before continuing to climb higher towards the resistance zone at 1.22000.
However, analysts do not rule out the situation of the strengthening of the US dollar which can happen at any time and pressure the price to fall again.
A drop back below the 1.20000 zone will see the price head back to the early week support level around 1.19400.
If the price continues to drop lower, the 1.19000 zone will be tested and likely to break through to head to the 1.18000 concentration zone and record the latest low.
