Following the ongoing depreciation of the US dollar, other major currencies including the Pound also rose higher towards the end of the week.
Added to the expectations of all components on the United States (US) NFP employment data report which will be gloomy, the Federal Reserve (Fed) policymakers are also looking to stop interest rate increases for the time being.
Thus, the US dollar moved weakly when the focus on the debt ceiling issue previously began to shift back to the central bank's monetary policy.
On the price chart of the GBP/USD currency pair on Thursday yesterday, a daily increase of up to 130 pips was successfully exhibited.
At first, the decline was displayed first in the Asian session towards the level of 1.24000, then the price managed to jump up to reach the height of 1.25400 in the New York session.
A rebound is also seen to occur when the price touches the support level of the Moving Average 50 (MA50) on the 1-hour time frame which indicates that the signal is still bullish.
The slow movement continued in the Asian session this Friday morning, but the rising pattern is still expected to continue.
The target for further price increases is to reach the level of 1.26000 before the higher increase, if successful, will reach a height of 1.27000.
However, if the situation changes during the reaction to the publication of NFP data later tonight, the price can change direction and make a decrease again.
A break below the 1.25000 level again would expect the initial decline to head towards the 1.24000 support zone.
After breaking the MA50 support, watch out for a further drop that could reach the 1.23000 zone that was the focus of last week.
