Investors weighed in on indicators for a reversal of the bullish trend on the GBP/USD price chart after the US dollar reacted gloomily following the outcome of the FOMC meeting earlier this morning.
The Federal Reserve (Fed) has raised interest rates as expected, but the US dollar failed to strengthen instead moving weakly until the end of the New York session.
This opens up space for the Pound to continue to soar while investors await the outcome of the England central bank's policy meeting today, at 8pm local time.
The Bank of England (BOE) is also expected to follow in the Fed’s footsteps to raise interest rates after doing so at previous meetings.
The price on the GBP/USD chart has shown an increase from the lowest level at the beginning of the week which is at the support of 1.3000 and has already passed the level of 1.31000 yesterday.
Investors also assess the price movement to remain in a bullish trend supported by the Moving Average 50 (MA50) support level on the 1 -hour time frame.
The continued rise in the Asian session this morning (Thursday) is seen heading towards the 1.32000 zone which was the resistance tested last week.
If the price manages to overcome last week's high, the next rise is seen heading towards the SBR (support become resistance) zone of 1.33000 for a clearer bullish trend movement.
On the other hand if the 1.32000 zone remains a resistance for the price this week, investors are waiting for the re -strengthening of the US dollar in anticipation of a bearish return.
A decline below the 1.31000 level will re -target the 1.33000 support zone which was the bullish point at the market opening earlier this week.
