The Pound Sterling was among the currencies that exhibited excellent performance this week with its surge in value continuing on Wednesday's trading yesterday.
This follows the release of UK inflation data in yesterday's European session after employment data was the focus earlier on Tuesday.
The UK's annual inflation rate met forecasts for a slight drop to 10.5%, but the market still sees the level as remaining high.
This will encourage the central bank of England (BOE) to continue tightening its policy while supporting the increase in the value of the Pound.
On the price chart of the GBP/USD currency pair, the price has managed to rise above the resistance at 1.23000 and test the target zone of 1.24000.
The daily increase was recorded around 180 pips yesterday with the price movement still remaining in a bullish trend which is above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.
After testing the highs of 1.24000, the price dropped back towards the end of the New York session and closed around 1.23400.
Price movements are likely to be slow in the Asian session but are expected to continue the rising pattern in the following sessions.
The continued rise will retest the 1.24000 zone before heading to the latest target at the height of 1.25000.
If it breaks through 1.24000 and reaches a height of 1.25000, the price will record a new 7-month high.
But be alert if the pattern starts to change with the price starting to make a decline below the 1.23000 level again.
Also crossing the MA50 support level will be an indication of a bearish movement that will push the price back to the previous concentration zone at 1.22000.
A drop lower could reach back around 1.21000 which has been a price support level in last week's trade.
