The price chart of the GBP/USD currency pair will continue to be traded at risk with high-impact data for the Pound and the US dollar being the focus of investors.
On Tuesday yesterday, UK employment data was the focus of the European session. With a somewhat mixed reading of the component, it appears to fail to support the increase in the value of the Pound.
While the price movement increased in the New York session when the inflation data of the United States (US) was published in line with the forecast of slightly lower figures.
The US dollar weakened as soon as the data was published, but recovered again putting pressure on the Pound in the session.
As can be seen on the GBP/USD chart, the price surged up testing the resistance level at 1.26000 before the price plunged back towards the 1.25000 level but failed to touch it.
The price remains hovering between the 1.26000 and 1.25000 range with investors still awaiting the next indication for a clearer price direction.
Prices that also move near the Moving Average 50 (MA50) line on the 1-hour timeframe on the GBP/USD chart are watched by investors to assess price trend changes.
If the price moves up, the resistance at 1.26000 will again be tested to be broken and give a bullish signal.
The continued price increase will return to the previous concentration resistance zone at the height of 1.27000.
On the other hand, if the price is pressed to fall down, the 1.25000 level as support during the price will continue to be pressed.
If the level ultimately fails to prevent the price from falling, the price that breaks through lower will continue the previous bearish trend movement.
The next downside target is seen around 1.24000 to record a recent 4-week low.
Investors will be more cautious for both the US dollar and the Pound this week ahead of the Bank of England (BOE) and FOMC policy meetings.
