The price chart of the GBP/USD currency pair on Wednesday yesterday has seen a rise in price displayed in yesterday's New York session.
This follows the US dollar moving weakly influenced by several factors focused on the market.
Among them are gloomy expectations on the United States (US) NFP employment data report to be published on Friday, with some economic data to be observed first today.
In addition, some Federal Reserve (Fed) officials are of the view that interest rate hikes need to be 'rested' for the time being to assess the impact on the US economy, as well as encourage a decline in the US dollar.
However, on the GBP/USD chart yesterday saw a price drop first in the Asian and European sessions.
The price initially fell to 1.23500 before rebounding past the 1.24000 level and reaching a high of 1.24400 at the close of the New York session.
The re-movement of the price above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart triggers the expectation of a bullish trend for the price.
If the surge continues, the price will head towards the 1.25000 level which is seen as the closest resistance.
Next, a higher rise will reach the 1.26000 zone to record the latest 3-week high.
However, be careful if the price plunges back below 1.24000 and breaks through the MA50 support, investors should expect a more severe price drop.
For the decline, the 1.23000 support zone is seen to be tested before the continued decline can reach up to around 1.22000.
