After a 150 pip surge on Monday, the GBP/USD pair continued its upward trend on Tuesday.
Around 130 additional pips yesterday's gain has pushed the price through the 1.36000 resistance zone and recorded a new 3-year high near 1.36500.
However, momentum appears to be slowing down, continuing trading on Wednesday with a flat movement since the Asian and European sessions.
Hopes for a ceasefire by Iran and Israel as previously announced by President Donald Trump temporarily eased risks in the market.
However, the market remains alert to changes in the situation that could occur and change the direction of the US dollar's movement, which is still weakening at the moment.
The price is still above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart, suggesting that the upward trend will continue.
If the increase continues in the following sessions, the expectation is for the price to reach 1.37000 as the nearest target.
The last time the price traded at that height was since January 2022.
However, if the war heats up again and the US dollar strengthens again in the market, the price could be pushed down below 1.36000 and investors will watch for signs of a trend change.
For the expected price decline downwards, the 1.35000 level will be tested before the price continues to decline lower to the 1.34000 support zone.
