The price movement on the chart of the GBP/USD currency pair was flat throughout Monday yesterday as the market was still in a cautious mood awaiting the impact of the latest development of the United States (US) debt ceiling issue.
An agreement was finally reached between President Joe Biden and Republican McCarthy to raise the debt ceiling and is now awaiting approval in the House and Senate.
Following the closure of banks in the US and the UK at the beginning of the week yesterday, the US dollar and Pound were seen to be flat until the end of the New York session.
The price slowly crept above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart until it continued into the Asian session this morning (Tuesday).
Resistance remains at the 1.24000 level while the price support level at 1.23000 with the price moving in the 100 pips range since the end of last week.
The direction of movement is more clearly determined after one of the concentration levels is broken by the price.
If the surge happens to see the price break through the 1.24000 resistance, this will be a bullish signal to support the price continuing its rise towards the 1.25000 zone.
For a continued higher rise, the height level at 1.26000 will be the next target.
On the other hand, if the price starts to plunge again, the 1.23000 support level will be tested and if it is broken, investors should prepare for a deeper price drop.
The latest decline could reach up to around 1.22000 to record a recent 10-week low.
