The GBP/USD currency pair chart shows the price rising to the latest 9-week high after successfully breaking out of the previous sideway zone.
If you look, the price has been moving horizontally around the 1.26000 zone since the beginning of the week after the price increase last week managed to reach that zone.
On Wednesday, UK inflation data was published with a higher reading than expected, but the Pound failed to rise but instead showed a slow decline.
The price increase was finally shown on Thursday yesterday in addition to the depreciation situation that is occurring on the US dollar currency.
The price that managed to break out of the 1.26000 zone reached a new high around 1.26700 at the end of the New York session yesterday and slowed around that in the Asian session this morning (Friday).
The increase continued in the European session after the UK retail sales data also came in with a strong jump.
Retail sales in January rose to 1.7% versus the forecast of 0.4%, following a -0.6% contraction in the previous month.
UK and US manufacturing and services PMI data will be watched closely which could influence price action.
The price rise will test the 1.27000 support level to set new highs before further upside targets are around 1.28000.
However, if the price pulls back, the previous 1.26000 zone will be back in focus.
However, a break below the 1.26000 zone could trigger a bearish trend reversal before a lower decline occurs.
