Much to the surprise of investors, a 120 pips jump in price was displayed on the chart of the GBP/USD currency pair yesterday.
Initially, the Pound currency was seen trading under pressure with prices falling low to around 1.26300 after investors digested the cues from the FOMC meeting.
Focus on the results of the BOE policy meeting at the beginning of the New York session yesterday saw the interest rate maintained at 5.25% as expected.
However, the Pound managed to display strengthening until the end of the session with the strong jump reaching a height of 1.27500.
This situation has actually been driven by the significant depreciation of the US dollar again as investors are more cautious ahead of the United States (US) NFP employment data report that will be published today.
Observing the movement of the GBP/USD chart, the price is actually seen to have not yet come out of the previous horizontal zone of 1.2700, but the range of movement towards the end of the week is widening.
Yesterday's drop in price still recorded a recent 2-week low before rebounding above the 1.27000 zone.
The price movement continues trading in the Asian session this Friday morning seen to be flat at a height of 1.27500.
The upward momentum, if successfully maintained, will see the price test the resistance zone at 1.28000.
Going higher to display a more significant bullish movement will target 1.29000.
On the other hand, if it returns to dive below 1.27000, the lowest level reached yesterday will be the closest level to target again.
Next, the support zone at 1.26000 will be the target to be tested like trading in the middle of January.
