Although the price movement on the chart of the GBP/USD currency pair is still in a bearish trend, there is a rebound in the price displayed on Wednesday's trading yesterday.
This is due to the US dollar moving weakly in the European session before slightly strengthening again in the New York session.
In addition to the fact that investors are carefully evaluating the indications of monetary policy by the Federal Reserve (Fed), the news that appears in the market affects the current sentiment and moves prices.
As the US dollar weakened in the European session, the focus was on positive developments in China when the government announced the zero-Covid policy would be ended and replaced with other methods to deal with the issue of virus transmission.
Thus, the price hovering above the 1.21000 level has jumped around 130 pips to reach a height of 1.22300.
But further price increases did not continue when the decline of the US dollar was limited in the New York session with reports of nuclear war threats by Russian President Vladimir Putin rekindling concerns in the market.
The price retreated again and hovered again in the 1.22000 concentration zone until trading resumed in the Asian session this morning (Thursday).
Price movement that has been above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart is considered as an early signal for a possible trend change.
If the price shows a surge from the 1.22000 zone, the intended target is seen to be at 1.23000.
Breaking through that resistance is likely to push the price above the highs reached earlier in the week before heading towards the expected 1.24000 level for a 6-month record high.
On the other hand, if the previous bearish pattern continues, the support zone at 1.21000 will be the focus to be tested again.
If it breaks through the following zone, the price is likely to fall to around 1.20000 anyway.
