A jump of around 130 pips on the price chart of the GBP/USD currency pair on Tuesday yesterday following changes in the movement of the US dollar currency.
The pound rose against the US dollar, but investors will be cautious ahead of the release of UK inflation data due in the European session shortly.
If the figures published match the forecast to go down or lower, the Pound is at risk of falling again like the movement at the beginning of the week.
After the price opened around the 1.26300 level in the Asian session yesterday, the continued rise in the European session broke through the initial resistance at 1.27000.
The price also crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart which suggests a change to a bullish trend again.
An increase was achieved in the New York session yesterday around 1.27600 before the price retreated back down and leveled off to resume trading in the Asian session today (Wednesday) around 1.27200.
But with yesterday's movement pattern, the price is expected to continue rising higher towards the 1.28000 zone and try to overcome the height reached last week.
A successful rise beyond that will target the 1.29000 level which will record the latest 5-month high.
On the other hand, if the price falls back below the 1.27000 level and also the MA50 support, this will be a bad sign for the price again.
This is because the price could collapse and a decline can be expected towards around 1.26000 and display an important reaction around it for further movement indicators.
If the price still breaks through lower, the 1.25000 support zone is waiting to be touched again as it happened in the previous weeks trading.
