The Pound showed positive price movements on Tuesday trading yesterday supported by the latest UK economic data published in the European session.
Looking at the employment data report, wage growth in the UK in the second quarter posted a sharper-than-expected jump, sending the Pound up.
Wages increase will make people spend more, the price of goods will increase, inflation will increase.
Thus, this situation gives an early signal that the central bank will implement monetary policy tightening by raising the current interest rate.
The focus will be on the UK inflation data that will be published in the European session shortly.
On the price chart of the GBP/USD currency pair yesterday saw an increase in the European session reaching a height of 1.27500.
However, the strengthening of the US dollar towards the end of the New York session has pushed the price back to the focus level of 1.27000.
Horizontal price movement around that early in the Asian session this morning (Wednesday) and was also seen crossing above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.
A bullish signal will be assessed if the price bounces back in the 1.27000 zone and will try to overcome yesterday's highs.
The continued higher rise will also test the SBR (support become resistance) zone at 1.28000 which became price resistance last week.
Meanwhile, for the expectation of a price drop, a drop below the 1.27000 zone will expect the price to go to the support zone at 1.26000.
Since the beginning of last August, the price has not yet managed to break through the zone which still managed to restrain the price from falling lower.
