The strong rebound in prices on the chart of the GBP/USD currency pair has surprised investors when previously the price trend was down.
Last Wednesday, the price was pushed down to around 1.30000 recording a recent 3-week low.
However, the zone which is seen as a support zone for the price has managed to prevent it from falling lower and rebounding the price.
On Thursday yesterday, prices slowed down in the Asian and European sessions before showing gains in New York session trading that finally managed to break through the previous resistance at 1.31000.
The US dollar has started to show a significant decline even though the producer price index (PPI) data of the United States (US) was published with good numbers.
Consumer inflation (CPI) on Wednesday showed a decline in line with forecasts to a level of 2.5% which strengthened expectations for interest rate cuts to be implemented by the Federal Reserve (Fed) at next week's FOMC meeting.
The bullish momentum on the GBP/USD chart continued in the Asian session this morning (Friday) with the target for a higher move towards 1.32000.
Next, the height reached at the end of last week when the NFP data reaction around 1.32400 will try to be overcome if the bullish movement continues.
On the other hand, the price will be at risk of falling lower if the price movement begins to decline below the 1.31000 level.
The continued decline will return to the support zone at 1.30000 as tested last Wednesday.
