The rise in price on the GBP/USD currency pair chart earlier this week signaled a challenge to the record high that was recorded in September 2024 trading.
At the end of last week's trading, the price slowly approached the resistance level at 1.33000 as there was a lack of catalysts in the market to move prices other than the Good Friday holiday.
However, as expected, the US dollar continued its decline at the opening of the week, easily surpassing the 1.33000 resistance and recording a new 7-month high.
The price increase managed to reach the 1.34000 zone in the European session yesterday before retreating slightly and leveling off until the close of the New York session.
The bullish signal of the price maintaining movement above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart, investors expect the upward pattern to continue.
In the Asian session this morning (Tuesday), the price showed a recovery and slowly approached the 1.34000 zone.
The resistance zone is expected to be broken before challenging the high of 1.34300 that was recorded in September last year.
If it is successfully overcome, the price will record a new record high for the trading period of 3 years. The target is to go to 1.35000.
However, if the situation changes and the price shows a decline from the 1.34000 zone, it is likely that the price will go to around 1.33000 and the reaction will be watched for further direction.
A break lower will push the price to the important zone at 1.32000 which was the price support last week.
