Can GBP/USD Hold Above $1.2700?


 The pound traded relatively flat on Thursday yesterday but is still in a positive performance following the surge in value that started last Tuesday when the UK inflation data was published.

The day's UK retail sales data will be awaited in the European session after the inflation reading recorded a figure higher than forecast.

Thus, when the US dollar put pressure on other major currencies in the market this week, but the Pound managed to recover to trade towards the end of the week.

Examining the chart of the GBP/USD currency pair, the price had previously jumped from the level of 1.26000 that was hit and yesterday was seen testing the resistance of the level of 1.27000.

The price closed the New York session at the 1.27000 level and began to move above it slowly in the Asian session this morning (Friday).

The price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame in the chart gives the impression that the price continues the bullish trend and has already passed the 1.27000 level.

If the uptrend continues, the price will try to overcome last week's highs around 1.27800 before testing the 1.28000 resistance zone.

If a higher rise continues to be exhibited, the price will record the latest high level towards 1.29000.

However, if on the other hand the price fails to hold on to the 1.27000 level, a decline can be expected to occur again.

The support level at 1.26000 will be hit again and tested again before the reaction shown by the price will be an important signal for the price movement to continue into the next week.