Having just enjoyed the gains made after a sharp fall in the US dollar, the Pound currency was again pressured by UK inflation data published yesterday.
The UK's annual reading of the consumer price index (CPI) for October came in at 4.6% slower than the 4.7% forecast.
This is also seen as a significant change in the inflation figure in the previous month which was recorded at 6.7%.
Like the situation of the Federal Reserve (Fed), the Bank of England (BOE) is also seen to maintain the existing monetary policy or more towards slowing down the policy.
Thus, this has had a depreciating impact on the Pound while the US dollar was seen to recover slightly yesterday from its biggest annual fall.
Examining the price movement chart of the GBP/USD currency pair, the jump of more than 200 pips on Tuesday failed to continue on Wednesday yesterday.
On the other hand, the price has plunged from the height of 1.25000 to around 1.24000 briefly testing the concentration zone.
In the Asian session this morning (Thursday), the price was seen to continue to decline below 1.24000 and also gave an early signal for a bearish movement when it broke past the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.
Further decline if continued is seen to lead to the previous focus zone around 1.23000 which is the surge zone that started last Tuesday.
The next lower drop will target the 1.22000 level to retest the level that was last week's price support.
On the other hand if the price bounces back above the 1.24000 zone, the rise is expected to head back to the 1.25000 highs.
If the resistance is successfully passed, the latest high level will be recorded with a price target to reach 1.26000.
