UK manufacturing and services PMI data released in the European session yesterday showed good readings for both sectors for June.
However, the data reading was not the main driver of the Pound currency movement which showed a significant increase in value yesterday.
It was more driven by the depreciation of the US dollar following the announcement by President Donald Trump that Iran and Israel had agreed to a ceasefire.
Although there has been no official statement from the two warring countries, investors saw an initial reaction with market sentiment recovering for a while.
The weakening US dollar pushed the price up significantly on the GBP/USD currency pair chart in the New York session yesterday.
In the previous session, the price was slightly pressed to around 1.33700 before the price surged back to the 1.34000 zone.
The rapid price increase continued to break through the Moving Average 50 (MA50) barrier on the 1-hour chart and towards the end of the New York session, the price also broke through the 1.35000 resistance.
Slowly closing the trade at 1.35200, the price continued to rise at a slow pace towards the 1.36000 zone.
If the price manages to break through the 1.36000 resistance, the price will record a new 3-year high with a target shift to 1.37000.
However, if the price changes direction to make a decline, the 1.35000 level will be the initial focus for showing a reaction.
Continuing the decline lower will expect the price to approach the 1.34000 support zone again.
