The slow flat price movement last Tuesday changed its pattern on Wednesday yesterday on the chart of the GBP/USD currency pair.
At first a slow decline took place in the European session to the level of 1.27000, but the price reaction took place as soon as the price touched that level.
The price then jumped 100 pips to reach the target zone of 1.28000 in the New York session yesterday.
The situation is driven by the constant depreciation of the US dollar following the movement in last week's trading.
The pound managed to strengthen against the US dollar to a fresh 4-month high after yesterday's rise surpassed the highs reached in the previous week.
The price movement on the GBP/USD chart remains bullish which is above the Moving Average 50 (MA50) support level on the 1-hour time frame which was also tested yesterday.
After slowing down at the close of the New York session, the price remained hovering in the 1.28000 height zone in Asian session trading this morning (Thursday).
With yesterday's surge pattern, the price is seen to continue to rise higher today with the target focused on the height of 1.29000.
Reaching that level would mark the latest 5-month high after prices broke record highs in July trading.
Investors will be alert if there is a change in the situation in the direction of movement during the price heading down again.
The price drop is likely to return to the 1.27000 level which is a support for yesterday's price.
A drop lower at that level will be a warning sign for a change in the bearish trend, with the previous target levels being focused on again.
