The GBP/USD currency pair chart showed a rebound after investors reviewed the results of the Bank of England's policy meeting yesterday.
In line with market expectations, the Bank of England (BOE) kept interest rates unchanged at 4.25% with 6 MPC members voting to keep interest rates unchanged while 3 voted to cut rates.
Governor Andrew Bailey maintained a dovish tone by saying that inflation rates remained on a downward path despite the uncertain market environment.
The Pound currency, however, managed to show its increase in value against the US dollar which had lost its momentum before.
On the GBP/USD chart, the price that plunged last Tuesday then leveled off to test the 1.34000 support zone in the Asian session yesterday Thursday.
The price slowly rose for the next few sessions and continued trading in the Asian session, the price managed to reach the target level of 1.35000.
Upon touching the key level, the price reacted by bouncing back down in early European trading when UK retail sales data was released with a declining reading for May.
However, after the price moved above the Moving Average 50 (MA50) support line on the 1-hour chart again, investors saw a bullish signal that could push for further gains.
If the bullish pattern continues beyond 1.35000, the price could rise higher and head back towards the resistance zone at 1.36000.
But if the price continues to decline further, the support level at 1.34000 will be tested again as in Thursday's trading.
An extension lower would change the price target to the next zone around 1.33000.
