Investors are watching for signs of a trend change on the chart of the GBP/USD currency pair on Thursday trading yesterday when there was a surge in prices in the New York session yesterday.
As the US dollar strengthened against several major currencies, the Pound managed to absorb the pressure and show off its value recovery.
The US dollar was supported by the reading of the United States (US) jobless benefit claims data which recorded a better than forecast reading for last week.
Investors' expectations of a tendency for prices to continue moving lower on the GBP/USD chart were misplaced when the gains showed yesterday.
After briefly leveling in the 1.27000 zone, the price made a surge in yesterday's New York session crossing the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the chart, giving an early signal of a bullish trend change.
After reaching the level around 1.27500, the rise continued again in the Asian session this morning with expectations for the price to reach the level of 1.28000 before the end of the week's trading.
If the resistance of 1.28000 is also successfully broken, the price will show a more clear bullish movement with a target heading up to 1.29000.
On the other hand, if the price is pressed to fall back down, the previous focus zone at 1.27000 will be re-approached and the price reaction around it will be carefully observed.
If the speed breaks down, the price decline will continue to lower levels with the target moving to around 1.26000.
