The price chart of the GBP/USD currency pair on Wednesday yesterday showed a slow pattern like the previous day, but there was a slight decline seen.
As expected, the US dollar remained flat as investors cautiously awaited the release of United States (US) inflation data in the New York session shortly.
The slow decline of the price is seen to test the 1.21000 level which is now the current support level when the price is seen to bounce back after touching that level.
However, it gives a bearish signal when the price starts to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.
In fact, investors are also expecting a gloomy movement for the Pound currency due to the publication at the end of the week of UK economic growth data which is predicted to decline.
After closing the end of the New York session at around 1.21500, the price hovered slowly around that area continuing the opening trade of the Asian session this Thursday morning.
The price increase if successfully continued again will test the resistance at the 1.22000 zone reached during the increase at the beginning of last week.
If broken, the price will next target at 1.23000 and could reach up to the height of 1.24000 to record the latest 4-week high.
However, if the price instead makes a decline, the support level at 1.21000 will be the focus once again for the price to test the RBS (resistance become support) zone.
A lower decline will give a clearer bearish signal and push the price back to the concentration zones of the previous weeks such as around 1.20000 or lower at the 1.19000 zone.
Therefore, investors will monitor the release of US inflation data tonight before the focus shifts to UK economic data on Friday.
