Unlike what investors expected for the expected reaction after the United States (US) inflation data was published, the price movement on the chart of the GBP/USD currency pair is still flat below the 1.25000 price zone.
Prices initially showed a decline in the European session as the Pound weakened after UK economic growth data was published with a contractionary figure.
Falling to a level around 1.24400, the price rebounded a little before the price showed a reaction in the next session.
The reading of the US consumer price index (CPI) in August rose to 3.7%, beating expectations of 3.6%, inviting a reaction to the US dollar currency.
The initial strengthening of the US dollar has seen the price pushed back to around 1.24400, but the strengthening momentum faded again and the price rebounded to the 1.25000 level.
Until the end of the New York session connected to the Asian session this morning (Thursday), the price is still hovering below the 1.25000 level which is seen as an obstacle for the price.
Prices are also flat around the Moving Average 50 (MA50) line on the 1-hour timeframe on the GBP/USD chart as investors watch for clues to the next price direction.
If the price manages to break high above 1.25000, it will signal the start of a bullish trend with the target for the price to reach back to the 1.26000 level and test that resistance.
Continuing to climb higher, the price will head towards the previous concentration level at 1.27000.
However, if the 1.25000 level remains an impenetrable barrier, investors will be waiting for a bearish signal to occur.
The level reached yesterday may be overcome before the price heads to the support zone at 1.24000.
