Did you know that the price on the GBP/USD currency pair chart has jumped around 300 pips since yesterday?
Trader Pound was happy to make a profit when the central bank meeting took place this week.
The Bank of England (BOE) policy meeting yesterday met the forecast for interest rates to be maintained at 5.25% following the footsteps of the Federal Reserve (Fed) at the FOMC meeting that took place early the previous morning.
Unlike Fed Chairman Jerome Powell, who is clearly heading towards easing monetary policy, BOE governor Andrew Bailey is still seen as sticking to his 'hawkish' stance, which supports the Pound to soar.
In addition to the significant depreciation of the US dollar, the price on the GBP/USD chart has managed to record the latest 4-month high.
At first the price seen jumped from the level of 1.25000 past 1.26000 during the FOMC, and then continued the rising pattern breaking through the resistance zone at the end of last November trading at 1.27000.
Not stopping until then, the price continued to peak almost touching the level of 1.28000 but started to slow its movement at the end of the New York session and the price remained 'calm' continuing the opening of the Asian session this morning (Friday).
With the momentum that has been shown, the tendency is for the price to continue higher above 1.28000 and aim to reach the latest high again at 1.29000.
Beware if the price makes a drop again in the usual price direction change in the final sessions of the week, the price will return to around 1.27000.
If it breaks down, this will be a warning to investors to be aware of the risk of the price falling lower again.
The 1.26000 and 1.25000 levels will be in focus if the bearish price movement occurs again.
