The price chart of the GBP/USD currency pair has shown a jump of almost 200 pips during the closing trade of the New York session.
Has the Pound Sterling begun to dominate the market again?
In fact, the drastic price movement that occurred was driven by the US dollar following the market's reaction to the speech by Federal Reserve (Fed) Chairman Jerome Powell early this morning.
After puzzling for weeks, finally got an answer to the Fed's monetary policy guidance when Powell expressed the need to slow interest rate hikes likely starting in December.
Following that, the US dollar suffered significant declines after showing initial strengthening in the New York session at first when the release of US economic growth data increased for the third quarter.
The price on the GBP/USD chart initially made a decline from the 1.2000 zone to reach 1.19000 before jumping almost 200 pips to a high of 1.21000 at the end of the New York session.
The price that has crossed the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart has become an early sign of a bullish trend change.
Continuing the rise at a slow pace in the Asian session this morning (Thursday), the price is seen testing the resistance of 1.21000 with expectations to continue the rise higher.
Next, the 1.22000 zone is seen to be the new price target to record the latest 4-month high.
Meanwhile, for the expectation of a price drop again, the 1.2000 zone will display an attractive price reaction for investors to assess the signal of further price movement.
If it succeeds in falling lower, some concentration levels will be tested such as 1.19400 and also 1.18800 before the price will return to the 1.18000 zone.
