The price chart of the GBP/USD currency pair showed a jump of 100 pips on Tuesday yesterday continuing the bullish trend movement as expected.
The situation is still driven by the continued depreciation of the US dollar with the latest economic data from the United States (US) continuing to give a shadow for the Federal Reserve (Fed) to move towards easing their monetary policy.
In the New York session tonight, the US ADP employment data and the service sector survey will be given attention which will drive further movement of the US dollar.
The effect of the continued depreciation of the US dollar remains in favor of the Pound to continue to rise to recent highs.
The price surge on the GBP/USD chart that took place yesterday has surpassed the highs of last January and also December 2022, making a recent 10-month high of 1.25000!
If observed, the price initially hovered slowly at the 1.24000 level which was previously the price resistance level during last week's trading.
Then the surge continued to reach the level of 1.25000 with the expectation that the bullish trend will be maintained further as the price is still moving above the support level of the Moving Average 50 (MA50) in the 1-hour timeframe on the GBP/USD chart.
The next target is at the height of 1.26000 with a distance of 100 pips from the current level if the price increase continues successfully.
Meanwhile, if the price fails to continue the rise past the 1.25000 level, the price drop will return to stop at 1.24000 and will invite a price-pulling reaction.
A lower plunge in price will signal the beginning of a trend change and then the 1.23000 zone will be tested.
