The price chart of the GBP/USD currency pair in yesterday's Monday trading showed a daily jump of up to 110 pips!
The move was driven by a weaker US dollar at the opening of the week after investors observed mixed movements last week.
The decline in the dollar index and the US 10-year treasury yield has made investors increasingly wary of trading the US dollar.
Meanwhile, today's focus is on the release of manufacturing and services PMI data in the UK and US which will have an impact on the movement of the Pound and the US dollar.
As expected by analysts, the price is still moving in a bullish trend that is above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.
Then, in yesterday's New York session, the price surged and broke through the resistance zone at 1.22000 which was tested several times last week.
After breaking through it, the price reached highs around 1.22570 at the end of the session before closing slightly lower.
Continuing the opening of trading in the Asian session this morning (Tuesday), the increase continued to higher levels towards the target at the 1.23000 zone.
The 1.23000 to 1.23300 zone is seen as an important resistance zone that will be tested by the price and the price reaction will be observed for the next movement indication.
If the resistance zone is successfully broken through, the price can potentially rise to around 1.24000 which is also seen as a price concentration zone.
However, if the price decline occurs again, the 1.22000 level will be observed again to see how the price reacts to reaching that area.
If it breaks down, the decline will lead to the support zone of the previous week's concentration at 1.21000.
