Price movements on the chart of the GBP/USD currency pair are increasingly mixed, but investors understand the risks as the United States (US) inflation data gets closer to publication.
Will be the focus at the beginning of the New York session tonight, the consumer price index (CPI) data is predicted to increase to 3.3% for July from the previous level of 3.0%.
When uncertainty prevailed, the US dollar currency failed to show a clear direction of movement.
The Pound is trying to 'breathe' again after resisting pressure from the US dollar last Tuesday.
However, on Wednesday yesterday, the price on the GBP/USD chart only showed an increase in the Asian session before retreating back down in the European session continuing until the end of the New York session.
The price which initially reached the height of 1.27800 has dropped to around 1.27200 and slowed down around that at the opening of the Asian session today (Thursday).
A price move back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart signals a warning for a lower price drop.
A price drop if it happens needs to first test the current support level at 1.27000 which has previously managed to curb the fall several times.
However, if the price breaks through that level, a lower decline will be expected to lead to the next concentration zone at 1.26000.
Meanwhile, for the prediction of the rising price pattern, the MA50 barrier that is successfully passed will see the price test the resistance zone at 1.28000.
After passing the zone, the price is able to climb higher towards the target at the resistance level of 1.29000.
