The price chart of the GBP/USD currency pair is back on the positive side showing a resurgence in prices on Tuesday yesterday fading expectations for prices to continue the plunge that occurred at the beginning of the week.
This is due to the re-decreasing of the US dollar after the focus now shifts to the inflation data of the United States (US) which will be published in the New York session tonight.
The published data is expected to invite volatile price movements before the market will assess expectations for the monetary policy decision by the Federal Reserve (Fed) for the meeting in early May.
The effect of the release of the data will also drive the direction of price movement towards the end of this week's trading.
On the GBP/USD chart, the price that initially plunged last Monday to reach 1.23500 then rebounded to rise again past the 1.24000 level yesterday.
Highs were reached at 1.24500 before prices eased slightly and slowly ended the New York session above the 1.24000 level.
The slow movement of prices continued in the Asian session this morning (Wednesday), but investors assessed bullish indications after the price had started above the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the GBP/USD chart.
The price increase if successful continues today will return to the resistance zone at 1.25000 which is the highest price recorded last week for the 10 month trading period.
The price can record the latest high again if the zone is successfully penetrated with a price target to reach around 1.26000.
On the other hand if the price starts to plunge back below 1.24000, the level reached at the beginning of the week 1.23500 is likely to be overcome by the price.
The price will drop lower towards the support zone at 1.23000 before continuing the decline to the previous concentration zone of 1.22000.
