The decline of the US dollar on Tuesday's trading yesterday was also a factor in giving room for the Pound currency to show recovery.
Global market sentiment that recovered with developments in China with its economic stimulus measures has had a detrimental effect on the US dollar as a safe-haven.
However, the Pound was also supported by the speech by Bank of England (BOE) governor Andrew Bailey that the British economy is showing signs of recovery after facing the risk of recession at the end of 2023.
Thus, it can be observed that the significant price jump on the chart of the GBP/USD currency pair yesterday recorded a daily increase of around 90 pips.
The price that moved up again passed the 1.26000 level and reached a height of around 1.26600 in the New York session before retreating slightly at the close of the session.
The price started trading in the Asian session this morning (Wednesday) around 1.26200 and is seen to be still moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart as an indication of a bullish trend.
The rising price pattern is expected to continue today, surpassing the level reached yesterday before the price goes to the concentration zone at the height of 1.27000.
However, the current price movement situation may change after the FOMC meeting minutes report is published with the market reaction pushing in a different direction.
For the expected decline, the price is likely to drop back below the 1.26000 level and pass the MA50 support, triggering a bearish signal for the price.
The retracement that occurs will target last week's level at around 1.25400 before continuing to lower towards the 1.25000 support zone.
