The price chart of the GBP/USD currency pair was seen to jump almost 100 pips as the market reacted to the United States (US) inflation data in the New York session yesterday.
The US dollar weakened significantly as the consumer price index reading was published lower than expected, showing that US inflation remained declining for 9 consecutive months to the lowest level since May 2021.
Thus, it can be seen that the price which initially made a decrease in the European session reached the level of 1.24000 and then bounced high almost touching the level of 1.25000.
A bullish signal is evaluated with the price movement still above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart with the drop in the European session yesterday also testing it.
With the expectation that the US dollar will continue to weaken again today, the rising price pattern will continue in the following sessions with the 1.24000 resistance being tested.
After successfully breaking through, the price will record the latest 10-week high by continuing to rise towards the next target at 1.26000.
However, be careful if the price changes its direction to make a decline again and is about to retest the support level at 1.24000 that was hit yesterday.
Breaking through that level will encourage a decline towards the previous concentration zones such as 1.23000 and 1.22000 after more clear bearish signals have been shown.
Investors will focus on the UK economic growth data that will be published at the beginning of today's European session which will influence the movement of the Pound.
