The bullish pattern on the chart of the GBP/USD currency pair continued on Wednesday yesterday continuing the movement of the previous day.
The US dollar's still declining performance towards the end of the week still leaves room for the Pound to rise even if the price recovery is seen to be slow.
If observed on the GBP/USD chart, the price that has started to move above the 1.26000 level after successfully breaking through, displays a daily increase of around 40 pips to the 1.26400 level.
The rally continued after Tuesday's price movement broke through the Moving Average 50 (MA50) line on the 1-hour time frame of the chart, signaling an early bullish trend change.
The price movement in the Asian session this morning slowed down around the 1.26400 level reached yesterday with the expectation that price increases will continue in the following sessions.
The target is to head towards the concentration level at 1.27000 and the price reaction will be watched for investors to assess the indications for further movement.
If the move higher continues, the previous week's high around 1.27700 is a target to be retested.
However, investors will be wary of a trend change if the price starts to move below the 1.26000 level.
After also passing the MA50 support, the price drop will return to the 1.25000 support zone.
At the beginning of the week, the decline in prices failed to touch that level before the increase in prices was displayed.
