After patiently waiting, Pound investors were finally pleased to see the price spike on the GBP/USD currency pair chart yesterday after successfully breaking through the barrier that prevented price increases since last week.
Following the instability in the US dollar which is still affected by the uncertainty of war sentiment, the Pound managed to take advantage of the opportunity to strengthen supported by the interest rate hike by the central bank of England (BOE) last week.
After a few days of testing the resistance zone at 1.32000 until continuing on Monday at the opening of this week’s trading, the price finally managed to soar through the zone with a daily rise recorded yesterday around 150 pips!
The price movement is clearer to continue the bullish trend which is also supported by the Moving Average 50 (MA50) support level in the 1 hour time frame after the price was above that level since last week.
Continuing trading in the Asian session this morning (Wednesday), the price continued to rise to the level around 1.33000 to test the SBR (support become resistance) zone.
If the Pound manages to maintain its dominance over the weakness of the US dollar for now, investors will see higher gains continue beyond the 1.3300 level and then move on to the level around 1.34000.
On the other hand, if the situation changes and the US dollar manages to get the consolidation rhythm back, be wary of price falls again.
The initial decline is seen to return to the 1.32000 zone which was the previous price resistance, forming a new RBS (resistance become support) zone.
However, if the lower decline continues, the support level around 1.31000 will be tested before the price heads back to the main support zone at 1.30000.
The focus will be on manufacturing and services sector data reports in the UK and US on Thursday that will affect the movement of the Pound and US dollar over the weekend.
