Pound Sterling at the beginning of the week was seen to be able to maintain the strengthening pattern from last week taking advantage of the US dollar moving gloomy.
The focus is more on the possibility that intervention measures have taken place in Japan, seeing the Yen significantly strengthen while the US dollar is also affected.
No explanation was issued by the Japanese authorities and now the market is starting to shift its focus to the FOMC meeting that will take place early Thursday morning.
The price movement on the chart of the GBP/USD currency pair was observed to rise higher yesterday for the price to record the latest 3-week high level.
After the price made an increase above the 1.25000 level at the opening of the Asian session, the increase continued and reached a new high around 1.25700 in the New York session.
The price retreated slightly when resuming trading in the Asian session this morning (Tuesday) but the price movement is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart, showing a bullish signal.
The price increase is expected to continue further with the next target being at the height of 1.26000.
Breaking that resistance would expect the price to continue its climb towards the next concentration level at 1.27000.
However, if the price returns to decline, the initial support of the price is at the 1.25000 level.
The price plunging below the MA50 level will also be a signal for a trend change before the price heads to the target around 1.24000.
