The price chart of the GBP/USD currency pair showed a decline to yesterday's recent lows as both the Pound and the US dollar traded against each other.
This is driven by economic data published this week which is different for the UK and the United States (US).
US consumer and producer inflation data recorded an increase. So did retail sales for the month of August which soared.
Meanwhile, the unemployment rate in the UK rose in line with forecasts and the UK economic growth showed a contraction which is seen to put pressure on the central bank to set monetary policy at next week's meeting.
Examining the movement on the GBP/USD chart yesterday, the price hovering slowly at the resistance of 1.25000 finally displayed a plunge to reach the level of 1.24000 at the end of the New York session.
The 1.24000 support level is the expected target for price to test it and a slow horizontal price movement around it resumed trading at the opening of the Asian session this morning (Friday).
This bearish indication will push the price to continue its decline lower to record the latest 4-month low.
The target is to reach the next concentration level which is at 1.23000.
However, if the price shows a rebound from the 1.24000 support, the price increase is expected to return to the 1.25000 level.
But it will face the Moving Average 50 (MA50) obstacle in the 1-hour time frame on the chart before returning to signal a change in the bullish trend for the price.
Once the trend changes, then the price will be expected to make a higher increase towards the 1.26000 level.
