GBP/USD Pulled Up To $1.2600 Originally, Will Prices Plunge Or 'Fly'?


The price chart for the GBP/USD currency pair again shows its initial increase last night after flattening briefly.

Prior to this, the price decline had been in effect for 2 consecutive days, but on Thursday night the price movement situation began to change.

Although the UK economic growth data published last night was seen as less than encouraging, price increases remained in effect following the decline in the US dollar towards the end of the week.

If you look at the GBP/USD chart, the price decline that occurred this week was only to a level of around 1.25400 before increasing again.

Prices increased overnight to the original 1.26000 support level and this increase has also crossed the 50 Moving Average (MA50) resistance line on the 1 hour time frame on the chart giving an initial signal for a bullish trend change.

However, the price movement needs to first clear the 1.26000 hurdle to continue the rise higher.

If the price manages to overcome this obstacle, the target for the initial price increase is seen as trying to reach last Tuesday's high of around 1.26800.

Then, the 1.27000 zone will also become a focus to be tested and the price reaction will be watched.

However, if the price fails to rise above the 1.26000 level, the price decline may resume to retest this week's low level, 1.25400.

Next, the 1.25000 support zone will be tested and if broken, a new low will be recorded with the target moving around 1.24000 to aim for.