After displaying a bearish movement pattern from the beginning of the week, the chart of the GBP/USD currency pair has shown signs of a trend change when a significant jump in price occurred early this morning.
The situation that broke out was driven by the market's reaction to the results of the latest FOMC meeting with important indicators delivered by the central bank.
The Federal Reserve (Fed) kept interest rates unchanged as expected and the market saw a signal that projections were maintained for 3 interest rate cuts this year.
The US dollar weakened significantly after the meeting and prompted a jump of around 100 pips on the GBP/USD chart.
However, investors will continue to be vigilant today to await the results of the Bank of England (BOE) policy meeting at 8pm tonight.
Interest rates are expected to remain at 5.25% and the follow-up speech will be watched for further policy guidance.
Looking at the GBP/USD chart, the price hovering in the 1.27000 zone yesterday has since surged to almost reach the 1.28000 zone at the end of the New York session.
A bullish signal was seen after the price bounced back above the Moving Average 50 (MA50) barrier line on the 1-hour time frame of the chart.
The price increase is slow in the Asian session this morning but has touched the 1.28000 level which is an important zone to pass before the price continues to rise higher.
The next target is to reach the height of 1.29000 as the next concentration resistance zone for the price.
However, if the price declines again, the 1.27000 level will be hit again and tested before a trend change signal is observed.
Succeeding in going lower can expect the price to head towards the support zone around 1.26000.
