A bullish price pattern was displayed on the GBP/USD currency pair chart last week until trading in the last sessions.
On Friday, the price managed to record a daily increase of around 150 pips reaching a new high at the target of 1.25000.
The price increase was driven by the depreciation of the US dollar which received the initial impact of the transition of the Donald Trump administration in the United States (US).
The price movement that remained above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart maintains a bullish signal.
The price opened slightly lower than the 1.25000 high in the Asian session earlier this week but the tendency is for the price to still rise.
Flattening around 1.24500, the price is expected to rise above the 1.25000 high which is the current resistance level.
After successfully breaking through, the price will continue to rise higher to record a new 4-week high towards the target of 1.26000.
On the other hand, if the price retreats down, the closest support for the price is around 1.24000 and if it drops below the MA50 support it will give an early signal for a trend change.
Next, the price will make a decline towards the RBS (resistance become support) zone at 1.23000 which has been the focus for the past few weeks.
