The price bullish trend on the chart of the GBP/USD currency pair was successfully maintained driven by the continued depreciation of the US dollar.
Significantly experienced a fall in trading in the New York session yesterday, the US dollar continued to react as soon as the inflation data of the United States (US) was published with a figure that was in line with the forecast, which was slightly lower in April.
After US inflation rose to 3.5% in March, the highest since September last year, the latest reading started to decline to 3.4 for April.
This re-strengthens expectations for interest rate cuts by the Federal Reserve (Fed) to be implemented. Expectations are as early as September.
The pound took advantage of the opportunity to rise to a 5-week high and is on the verge of surpassing the level reached last April.
Examining the chart of the GBP/USD currency pair, the price that has passed the 1.26000 zone yesterday then continued to climb and until it continued into the Asian session this morning, finally the 1.27000 concentration zone was successfully reached.
The important level touched by the price is an important zone for the price that became a resistance in the trading of last April and failed to pass.
With the momentum currently being displayed, the price has the potential to break through the 1.27000 resistance and record the latest 8-week high.
The next target for higher price increases is to reach the 1.28000 zone.
However if the price fails to break above 1.27000 and bounces down, the downside risk is seen to return to around 1.26000 again.
Indicators of price movement at the end of the week will continue to be observed for investors to determine the direction more clearly even if the price tendency is still to continue rising.
