In contrast to the gloomy Euro, the Pound managed to show a significant strengthening in the European session yesterday following the release of important economic data.
The manufacturing and services sectors recorded well-increased figures in the UK for February.
This situation is likely to hinder the central bank's plans to stop policy tightening, and has prompted a strengthening of the Pound's value.
However, investors need to remain alert to the situation that can change at any time.
The potential for the US dollar to continue strengthening could also slow down the Pound's performance. Focus will shift to the release of FOMC meeting minutes and US economic growth data.
Examining the price chart of the GBP/USD currency pair, the price is seen to have jumped from the 1.20000 zone yesterday until it reached a height of 1.21400.
The price then eased slightly at the close of the New York session and ended trading around the 1.21000 concentration level.
Having surged above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart, prices are seen as potentially continuing the bullish pattern higher today.
The upside is seen to head towards the resistance zone at 1.22000 before continuing higher to challenge the highs reached last week.
On the other hand, if the price plunges again, the price will return to the current support at 1.2000.
If it breaks through lower, the price can reach up to around 1.19000 which is the price tested zone at the end of last week.
