GBP/USD is not running out of spikes, a little more will set an 8-month high!


A higher price-driven move on the chart of the GBP/USD currency pair on Thursday yesterday continued to record recent highs during the week's trading.

The situation remains driven by the weakening factor of the US dollar which remains weakened by the market's assessment of the dovish statement by Federal Reserve (Fed) Chairman Jerome Powell who signaled for the easing of monetary policy to take place this year.

Investors are cautiously awaiting the release of the United States (US) NFP employment data report soon which is expected to shake up trading in the final session for the week.

Looking at the GBP/USD chart, the price has managed to break through the 1.27000 resistance at the beginning of the week before the bullish pattern was maintained until yesterday.

Yesterday's daily increase of around 80 pips has managed to reach the target zone at the height of 1.28000 before the price slowly hovers around it to resume trading at the opening of the Asian session this morning (Friday).

Signals remain bullish, prices are expected to continue climbing higher above the levels reached in December 2023.

The price increase is expected to reach the 1.29000 level to record the latest 8-month high.

However, if there is a price drop again, a drop from the 1.28000 zone will expect the price to retest the 1.27000 level as an RBS (resistance become support) zone.

The price could drop lower after breaking through the zone with the target of heading towards the previous support level at 1.26000.