GBP/USD Breaks $1.3100, Targets $1.3200 Highs Again!

<p>&nbsp;The price chart of the GBP/USD currency pair maintained its excellent performance until the end of the week with a continued bullish trend.</p><p><br /></p><p>The UK economy's monthly growth in June recorded a slight contraction, but the figure was more than forecast.</p><p><br /></p><p>The pound still managed to strengthen after the wage data on the jobs report published earlier was encouraging while taking advantage of the US dollar's weakening situation.</p><p><br /></p><p>The US dollar extended its depreciation yesterday after the United States (US) producer price index (PPI) data also recorded a gloomy reading accompanying the publication of consumer inflation last Wednesday.</p><p><br /></p><p>Therefore, the market is now expecting that the Federal Reserve (Fed) will only raise interest rates once this year with the policy tightening cycle coming to an end.</p><p><br /></p><p>After last Wednesday's 100 pips jump on the GBP/USD chart, Thursday yesterday saw a daily gain of around 150 pips past the 1.31000 level for the latest high since April 2022.</p><p><br /></p><p>The price that started the surge from below the 1.30000 level has reached a height of around 1.31400 at the end of the New York session and the price is still hovering slowly around that area in the trading of the Asian session this Friday morning.</p><p><br /></p><p><br /></p><p>The bullish momentum is seen to continue the price increase higher at the end of this week with the target to enter the resistance zone at 1.31700-1.32000.</p><p><br /></p><p>However, there is still a risk of a further price drop, especially at the end of the weekly trading sessions due to profit taking activities by market players.</p><p><br /></p><p>If the price drops below the 1.31000 level again, it will test the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, which will signal a trend change.</p><p><br /></p><p>For a price drop, the 1.30000 level can be hit again to serve as the closest support level and if the price breaks through lower, the price can go to around 1.29000.</p>