The US dollar is still moving weakly in the trading session of New York yesterday after the market examines the results of the monetary policy meeting by the Federal Reserve (Fed) and the European Central Bank (ECB).
The Fed kept interest rates unchanged, but hawkish signals of another rate hike towards the end of 2023 have investors braced for an imminent strengthening of the US dollar.
However, the situation has not yet been shown where the US dollar continues to experience a more significant depreciation in addition to the United States (US) unemployment benefit claims data still showing worrying figures in the previous week.
Ahead of the Bank of England (BOE) policy meeting next week, the Pound took advantage of the space this week to strengthen to its latest high against the US dollar, the highest since April 2022.
Examining the price chart of the GBP/USD currency pair yesterday, the price increase still continued beyond the resistance at 1.27000 with a daily increase of around 150 pips recorded.
Initially the price hovered slowly around 1.26300 hovering above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart before continuing to rise to reach a high of around 1.27800 at the end of the New York session.
The price slowly moved at that high level continuing trading at the beginning of the Asian session this Friday morning.
With the momentum of the surge, the price is likely to continue its climb towards the target of 1.29000 to record a new high.
However, if the price drops again, the 1.27000 level will be tested and can become a new support for the price if it can bounce back.
If the breakout price is lower, prepare for the beginning of a bearish price trend that will lead to the 1.26000 or 1.25000 level again.
