The price movement on the chart of the GBP/USD currency pair on Wednesday yesterday also displayed a follow-up rising pattern affected by the reaction to the published United States (US) inflation data.
The latest inflation figure which fell to 3.0% in June is seen to be getting closer to the central bank's target and is expected to have a continued weakening effect on the US dollar at least towards the end of the week.
This leaves room for the Pound currency to continue strengthening its value, but investors will be cautiously watching the release of UK economic growth data in the European session shortly.
If observed on the GBP/USD chart yesterday, the price initially made a decline first in the European session towards the important level of 1.29000.
However, the price did not extend lower and remained above the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.
The next session saw a jump of around 100 pips following the reaction to the published CPI data until the price touched the concentration level of 1.30000.
That level became resistance and the price leveled below it until the end of the New York session.
A slight increase past the 1.30000 level was shown in the trades that continued into the Asian session this morning (Thursday) with the expectation that the bullish pattern will continue.
The target for the next increase is to reach the resistance level at 1.31000 while continuing to record the latest high level.
On the other hand, if there is a reversal of movement towards the end of the week, investors can expect the decline to re-enter yesterday's 1.29000 support.
Dropping lower and also moving below the MA50 level would expect a trend change to occur and the price could head up to around 1.28400.
