Pound accelerates its bullish momentum

The GBP/USD pair has broken above the 1.3000 level and it has come very close to the 1.3100 zone. The rally on the Pound comes on the back of weakness on the US Dollar after the disappointing data on inflation and retail sales out of the United States. Due to the fact that the probabilities of another rate hike by the FED during its next meeting have fallen, the Dollar has been weakening, helping the rally on its main counterparts, including the Pound. Even the emerging market currencies has benefited from the drop on the US Dollar. On the daily chart of the GBP/USD we can see that the pair may find some resistance at the 1.3100 zone, but if it breaks that zone to the upside, then its next resistance level could be the 1.3300 zone. On the other hand, due to the strong rally, the pair may try to correct during next week, but the 1.3000 level may change its function from resistance to support. Below the 1.3000 level, the 1.2900 or the 55 day EMA (purple line) may also act as support levels.