The GBP/USD currency pair price chart continued its surge for the second day reaching a new 3-month high.
Despite the lack of catalyst for the Pound at the opening of March, the British currency received a positive boost from the strengthening Euro with the proposal of a 500 billion euro fund to increase defense spending.
The price began an upward trend at the beginning of the week and then surpassed the high reached last week, which was around 1.27000.
It briefly tested the zone before the price continued to rise again on Tuesday yesterday until it recorded a new high for the period of 12 weeks.
The daily increase of around 120 pips exhibited yesterday approached the focus zone at 1.28000 at the end of the New York session.
However, the price began to move slowly around the zone continuing trading into the Asian session this morning (Wednesday).
If yesterday's momentum is maintained, the price will move higher than the 1.28000 zone before recording a new high.
For higher gains, the target will shift to the next focus zone at 1.29000.
However, if the price changes direction, the decline will stop back at the 1.27000 zone which is expected to trigger an interesting reaction.
The continued decline will also approach the 1.26000 level which was the focus at the beginning of the week before the surge began.
