The pound is still taking advantage of the situation of the continuous depreciation of the US dollar by showing an increase in prices on the GBP/USD currency pair chart.
The US dollar failed to maintain its strengthening momentum which was only demonstrated immediately after the United States (US) output inflation data (PPI) was published with figures that were higher than forecast.
The US dollar continued to move weakly until the end of the New York session while investors focused on the statement conveyed by the Chairman of the Federal Reserve (Fed), Jerome Powell, who was seen as remaining hawkish regarding monetary policy.
The UK jobs report was published positively in the European session overnight, but did not provide much support for the strengthening of the Pound, on the contrary the Pound rose when the US dollar experienced depreciation.
It can be seen that the initial decline occurred on the GBP/USD chart reaching the 1.25100 level before the price bounced to the latest high above the previous day.
Reaching around the 1.25900 level in the New York session, the price is seen continuing its slow increase in the Asian session this morning (Wednesday) touching the 1.26000 level for the price to test the resistance zone.
The trend remains bullish with price movements still above the support line of the Moving Average 50 (MA50) on the 1 hour time frame on the chart.
A rise higher will be expected once the 1.26000 hurdle is successfully overcome before it will then try to challenge the previous high at 1.26300.
Then the price will target an increase higher towards the target of 1.27000.
However, if the 1.26000 hurdle fails to be cleared and shows a pullback, there is a risk for the price to fall after this.
A price decline can be expected to re-reach the support zone at 1.25000.
