The Pound managed to trade stronger against the US dollar at the end of the week following the US dollar's downward movement, failing to maintain the strengthening shown during the reaction to Federal Reserve (Fed) Chairman Jerome Powell's speech last night.
After the appointment of the new UK Prime Minister, a gloomy atmosphere is currently enveloping England after the news of the death of Queen Elizabeth II was reported early this morning.
However, the Pound currency is not seen to be very affected but instead continues to follow the movement of the US dollar currency in the market.
Powell still hinted for the central bank to continue raising interest rates at the latest meeting, so investors will be ready for a strengthening of the US dollar at any moment while still moving bleakly at the moment.
On the price chart of the GBP/USD currency pair, the price was seen hovering above the 1.14000-1.14500 support zone on Thursday yesterday before a more positive increase was displayed in the Asian session this Friday morning.
Price moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart gives an early indication of the start of a bullish price trend again.
However, the price increase must first test the resistance of 1.16000 in the SBR (support become resistance) zone before showing a clearer signal for the subsequent increase pattern.
A move higher beyond the SBR zone is seen to retarget at the previous focus zone at 1.18000.
However, if the price decline occurs again, the 1.14000 support zone will again be the focus to be tested.
A lower break above that zone would mark the latest low for a 37-year trading period, the lowest since 1985.
The target for further decline in price could possibly reach around 1.13000 or lower at 1.12000.
