A change in the price pattern was identified on the chart of the GBP/USD currency pair after the impact of the results of the FOMC meeting early this morning which saw a significant decline in the US dollar currency.
Prices have jumped around 130 pips after the meeting and continued to rise in continued trading in the Asian session this morning (Thursday).
The Federal Reserve (Fed) kept interest rates unchanged at 5.50% and Chairman Jerome Powell commented on monetary policy that analysts rated as dovish.
The US dollar significantly decreased as the market saw the Fed getting closer to the end of monetary policy tightening and is expected to move towards an easing phase as well.
The focus will be on the results of the Bank of England (BOE) policy meeting at 8pm later with interest rates expected to be kept at 5.25%.
The price movement on the GBP/USD chart is seen to still be in bullish momentum after the surge in price has crossed the Moving Average 50 (MA50) barrier in the 1-hour time frame.
At first, the price drop was shown in the Asian and European sessions yesterday until it touched the 1.25000 level which became a support when making the price.
But the price then surged following the FOMC's reaction to break through the resistance level at 1.26000.
Highs were reached around 1.26300 before the New York session ended. The highs were overcome in the Asian session with a slow increase in prices exhibited.
The price increase is expected to continue towards the target of 1.27000 for the price to test the resistance zone.
If successfully penetrated, the price has the potential to record the latest height level to around 1.28000.
Meanwhile, if the price moves down again below the 1.26000 level, this will be a sign that the price increase is likely to be difficult to continue.
The decline could happen again for the price to re-approach the 1.25000 support level that was touched earlier.
Even a lower decline will occur if the price breaks through that level and resumes the bearish movement again.
