The bullish movement pattern seems to have been successfully maintained on the chart of the GBP/USD currency pair yesterday driven by the continued depreciation of the US dollar.
In addition to several economic data that received attention yesterday including ADP jobs, the market's focus was also directed to the testimony of Federal Reserve (Fed) Chairman Jerome Powell at the New York session yesterday.
In his speech in Washington DC, Powell explained that the Fed is on track to cut interest rates this year.
Although there is no clear signal as to when the interest rate cut will be implemented, it is enough to have a significant weakening effect on the US dollar.
Therefore, the Pound continues to take advantage of this situation to continue increasing its value since the beginning of the week.
On the GBP/USD chart, the price that has broken past the 1.27000 resistance is in line with analysts' expectations to continue rising higher.
The rally that continued into yesterday's New York session hit a fresh 5-week high around 1.27600 before retreating slightly to close the session at around 1.27300.
The price movement remains in a bullish pattern that is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.
If the price increase continues after this, overcoming the level reached yesterday will expect the price to reach a new target at a height of around 1.28000.
But be alert for a change in direction if the market situation changes towards an increasingly turbulent week-end trade.
If the decline occurs, the price is expected to test the 1.27000 concentration zone again and will give a bearish signal for the price if it breaks down.
A further decline can be expected to lead up to last week's support at 1.26000.
