The price action on the chart of the GBP/USD currency pair on Thursday yesterday recorded a daily increase of up to 260 pips!
The US dollar is clearly showing a lingering decline towards the end of the week on the dovish signal by Federal Reserve (Fed) Chairman Jerome Powell to slow interest rate hikes at the December meeting.
In addition, the gloomy economic data of the United States (US) published in the New York session yesterday strengthened the support for the Fed to slow down the policy tightening.
Thus, the further depreciation of the US dollar has opened up space for the Pound to trade high reaching its latest 6-month high.
Examining the GBP/USD chart, the price has shown a rising pattern throughout the day yesterday starting in the Asian session which continued the surge in the previous session.
The price that passed the important level at 1.21000 then managed to penetrate the concentration level of 1.22000 before reaching the target of 1.23000.
However, as soon as it touched the height of 1.23000, the price bounced back down around 50 pips to level around 1.22500 until trading slowly continued in the Asian session this morning (Friday).
With the energetic rising pattern that has been displayed, the price is seen as likely to continue the bullish trend movement to a higher level for the end of this week's sessions.
Successfully breaking through the resistance at 1.23000, the price will head towards the latest target level at the height of 1.24000.
The last time the price traded at that level was last June before the decline continued until September.
Meanwhile, for the expectation of a decline that can happen again, the price that fell below the 1.22000 level will return to the 1.21000 level which is one of the focuses this week.
A further drop in price will test the 1.20000 zone for investors to assess the price reaction around that area for an indication of the next price movement.
