The pound strengthened against the US dollar to a fresh 30-month high taking full advantage of the current market situation.
The pound, like other major currencies, also took advantage of the pressure on the US dollar, which is increasingly experiencing depreciation in line with the decision to cut aggressive interest rates by the Federal Reserve (Fed) last week.
However, investors are likely to remain cautious ahead of the Bank of England's (BOE) policy meeting report on Thursday, after interest rates were announced unchanged last week.
Observing the movement on the chart of the GBP/USD currency pair, until yesterday the price was bullish to make a recent high to pass the important level of 1.34000.
Prices slowly resumed trading in the Asian session this morning (Wednesday), but hovered at the latest peak level around 1.34300.
The bullish price trend is seen to continue with the price movement remaining above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
Expectations for continued gains after this are likely to touch the latest high at 1.35000.
However, be alert if the price drops below the 1.34000 level again, which could be an early sign of a trend change.
The price decline could return to around 1.33000 or lower if there are factors that change the current market situation.
