The Pound currency is seen taking advantage of the opportunity to strengthen on Thursday's trading yesterday following the significant re-depreciation factor of the US dollar.
This is due to the United States (US) unemployment claims data which recorded an increase last week.
This again reduced expectations for the Federal Reserve (Fed) to raise interest rates at next week's FOMC meeting with the majority expecting rates to be kept at current levels.
With the significant depreciation of the US dollar yesterday, the Pound managed to jump to a 4-week high after surpassing last week's price high.
The situation can be seen on the chart of the GBP/USD currency pair which saw a daily increase of up to 130 pips yesterday.
Starting from the level of 1.24300 at the opening of the Asian session, the price managed to close the New York session trading at the height of 1.25600.
The rise managed to break through the previous day's resistance at 1.25000 before overcoming last week's high around 1.25400.
Slow price movement continues trading in the Asian session this Friday morning, but the price that remains above the support level of the Moving Average 50 (MA50) in the 1-hour time frame of the movement on the GBP/USD chart gives a bullish indication.
With the momentum of yesterday's surge, the price is seen to continue its rise towards the 1.26000 level to record the latest high again.
If that level is successfully crossed, the next higher target will move to 1.27000.
But on the other hand, if the price falls back below the 1.25000 level, investors need to prepare for a situation where the price direction changes again.
It is possible that the price can go back to the support level of 1.24000 which was tested since the beginning of this week.
And if the decline continues lower, the support zone at 1.23000 is seen to be the main focus to aim for.
