The price movement on the chart of the GBP/USD currency pair managed to show a recovery on Tuesday's trading yesterday in addition to being driven by important data published.
At the beginning of the week, investors were presented with a price plunge from the 1.26000 level to the 1.25000 zone.
However, the price managed to bounce back from the zone to break through the 1.26000 resistance yesterday, with a daily gain of around 120 pips being recorded.
In yesterday's European session, the UK employment data report was published with a positive reading.
The index of average earnings rose higher than forecast to remain, the UK unemployment rate fell from the previous month, and unemployment benefit claims also recorded a low figure.
While the consumer price index (CPI) data of the United States (US) published in the New York session showed the lowest inflation rate since March 2021, prompting a decline in the US dollar.
Thus, the price on the GBP/USD chart has managed to jump past 1.26000 in the New York session yesterday to around 1.26200 and record the latest 5-week high.
With yesterday's momentum, prices are likely to continue the bullish movement, but investors need to be careful when trading is awaiting the results of the FOMC meeting.
The price increase pattern if continued to be maintained will expect the price to go higher today towards around 1.27000.
A drop in prices can also be expected especially when there is a surprise after the FOMC meeting that can pressure prices to fall again.
Moving below the 1.26000 level will push the price back to the 1.25000 level which has been an important zone for the price since last week.
A lower decline if it continues is seen to reach around 1.24000 which was the previous price support level.
The UK economic growth data to be published is seen to drive the movement of the Pound currency in the European session shortly, while the US producer price index (PPI) data will influence the US dollar in the next session before the focus is directed at the FOMC meeting.
