A daily gain of around 130 pips was recorded on the GBP/USD currency pair chart at the beginning of the week yesterday.
This situation deviated from the initial forecast of analysts who expected the price to go down with a tendency for the US dollar to continue strengthening this week.
The conflicting report on Donald Trump's tariff plan by the Washington Post yesterday has caused confusion in the market where Trump also responded that the reported news was incorrect.
Like other major currencies in the market, the Pound has also started to show a recovery after being pushed down by the strengthening of the US dollar last week.
After opening above the 1.24000 level in the Asian session on Monday, the price then jumped strongly above the resistance at 1.25000.
Reaching a height of around 1.25500, the price began to retreat back down with slow trading above the 1.25000 zone closing the New York session.
The slow price increase was shown in the ongoing trading in the Asian session this morning (Tuesday) approaching the level reached yesterday.
If the bullish pattern continues, the price will head towards the 1.26000 level to test the next resistance.
For a higher increase beyond that, the target will shift to a height around 1.27000.
However, if the price drops back below 1.25000, the expectation of a price decline will resume as last week.
The price will head towards 1.24000 before a signal for an extension of the decline lower will be observed.
