Ahead of the release of UK retail sales data at the start of the European session soon, the Pound Sterling is seen to be moving stronger against the US dollar while investors are expecting a lower decline.
Markets also did not react to China's sanctions on the UK following comments on issues in Xinjiang that are expected to add pressure to Pound trade.
Investors are likely to be cheered by the report of tax relief by the UK government worth £ 1.5 billion for companies affected by the pandemic crisis. This could possibly be a contributing factor to economic recovery.
While the Pound continues to show an increase on the price chart of the GBP/USD currency pair, analysts still see risks for a price decline and make investors more cautious.
In Thursday’s trading yesterday, expectations for the price to decline up to the 1.37000 level faltered as the price rose from the 1.36700 level to the 1.37400 level passing the Moving Average 50 (MA50) barrier on the 1 -hour time frame.
Rising prices are seen to re -test the SBR (support become resistance) zone at 1.38300 before signaling a clearer bullish trend change.
On the other hand, if the price plunges back below the 1.37000 level, the 1.36000 support level is still seen as a price focus destination.
