After a dismal opening at the start of the week last Monday, the Pound Sterling showed a better performance on Tuesday yesterday when significant strengthening was shown until trading continued in the New York session.
Analysts see the market more optimistic about Rishi Sunak who now replaces Liz Truss as the new Prime Minister of the UK in the hope of restoring economic stability again.
In addition, the US dollar was also traded weakly due to several factors such as the release of gloomy economic data from the United States (US) and the market's risk-on sentiment after the assessment of Chinese economic data, giving room for the Pound to jump higher this week.
It can be observed the price movement on the chart of the GBP/USD currency pair which has managed to overcome last week's high with a daily increase of around 230 pips recorded yesterday.
As expected by analysts, the price's latest rise has touched the concentration level at 1.15000 which was the resistance tested on October 5th.
The price then started to slow down and level off around 1.14500 continuing trading in the Asian session this Wednesday morning.
However, the price is expected to continue to rise higher based on the displayed pattern with the expectation to reach the high level at 1.16000.
A rise to that level will record the latest 6-week high by continuing the bullish trend.
On the other hand, if the price plunges again, the 1.13000 zone will come back into focus after the decline passed the support level of the Moving Average 50 (MA50) which previously stopped the price from going down.
The signal of a change in the bearish trend will push the price back to the previous concentration levels such as 1.12000 and 1.11000 which were the support for the price last week.
