The pound showed gains at the opening trade yesterday, supported by the release of UK economic growth data at the start of the European session.
The monthly reading of UK Gross Domestic Product data showed Britain's economy expanded by 0.2% from June to July 2022, up from a 0.6% contraction in the previous month, but falling short of expectations of 0.3%.
Therefore, the Pound has managed to strengthen since the Asian session yesterday until the data was published at the beginning of the European session yesterday, but failed to maintain the surge when trading continued into the New York session.
The report of UK employment data in the European session will soon be given attention before the focus of investors will turn to the release of UK inflation data on Wednesday tomorrow.
It can be observed that the price movement on the chart of the GBP/USD currency pair yesterday started trading early in the week with an increase to the latest 2-week high, continuing the bullish pattern since last week.
The situation of the depreciation of the US dollar ahead of the release of the inflation data of the United States (US) in the New York session later tonight, was also used by the Pound to strengthen the price overcoming last week's resistance at 1.16500.
The price is seen to have jumped from the level of 1.16000 to reach a height of around 1.17000 in the New York session before the flat price in the zone continued in the Asian session this Tuesday morning.
The price is still moving in a bullish trend, being above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.
With the bullish pattern displayed, the price is more likely to continue the rally higher towards the concentration zone at 1.17600-1.18000.
Passing the zone will encourage the price to continue its climb to test the resistance level tested at the end of August at 1.18800.
However, if the price starts to decline again, watch out for the price movement that drops back below the MA50 support level and crosses 1.16000 which will be an early signal for a bearish trend change.
The drop in price will be retargeted to reach the 1.14000 support zone which has been the focus of last week by recording the lowest price record since 1985.
