In line with forecasts, the Bank of England (BOE) raised interest rates by 25 basis points at its latest policy meeting yesterday.
The interest rate increased to 5.25% which is the highest level for a period of 15 years.
The policymakers vote was split with 2 voting for a 50 basis point hike and one for keeping rates.
Markets are somewhat at a loss to determine the direction of the BOE's monetary policy further and analysts are wary of expectations that the policy tightening measures are nearing an end.
The Pound weakened after the rate decision was announced but recovered slightly as trade moved towards the close of the New York session.
If observed on the chart of the GBP/USD currency pair, the price dropped to reach the level of 1.26200 following the initial reaction to the results of the BOE meeting yesterday.
However, the price gradually increased again until it managed to pass the 1.27000 level while the US dollar began to lose momentum awaiting the NFP employment data report today.
The slow price increase continued in the Asian session this morning (Friday) and has crossed the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.
If the increase succeeds in continuing higher, the initial resistance at 1.28000 needs to be broken before the price can continue its increase towards the concentration level of 1.29000.
If that level is also broken, the target will shift to last week's resistance level at 1.30000.
On the other hand if the price plunges back at the close of trading this week, the 1.26000 zone will be tested after the price breaks through yesterday's level.
A continued decline could reach around 1.25000 for the price's latest record low for 7 weeks.
