On the chart of the GBP/USD currency pair yesterday saw the initial price drop in the Asian session approaching around 1.31500 which continued the movement pattern after the FOMC meeting ended.
However, the US dollar which then began to move weakly saw the price surge again until it reached the target level of 1.33000.
In addition, the Pound surged following the reaction to the decision of the Bank of England (BOE) policy meeting which kept interest rates unchanged at 5.00% and conveyed a more cautious tone for further policy measures.
A change from a more dovish tone earlier had supported the Pound to rise as expectations for an interest rate cut by the BOE eased.
The jump of 160 pips managed to support the Pound currency to the latest highest level since February 2022 before the price retreated again in the New York session yesterday.
However, the price movement maintains a bullish trend with signals above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart.
The price opened around 1.32700 in the Asian session this morning (Friday) saw a momentary horizontal movement before the increase was displayed towards the end of the session.
The start of the European session saw the price surge past the 1.33000 resistance and hit another new high with the support of the latest published data on UK retail sales.
The latest data reading for August was strong at 1.0% beating the previous month's reading and also the forecast figure.
The target of a higher rise after this is expected to head towards the concentration zone at 1.34000.
However, if the price falls back below the 1.33000 level again, a decline in the price can be expected to return to the 1.32000 zone again.
A move below the MA50 support could also lead to a lower decline to the previous focus levels of 1.31000 or 1.3000.
