The change in price direction occurred again on the chart of the GBP/USD currency pair yesterday Wednesday as important economic data was published that affected the Pound and the US dollar.
UK inflation data published in the European session has plunged the Pound although it only recovered slightly on Tuesday.
The UK consumer price index (CPI) reading came in slower than forecast, recording the lowest inflation since October 2021.
Thus, prices have started to plummet in the European session following the sale of the Pound currency that occurred.
Continuing trading in the New York session, the decline continued when the US dollar was seen recovering supported by the release of the United States (US) consumer confidence survey data along with home sales data.
Both of these data recorded reading figures that increased beyond the forecast.
On the GBP/USD chart, after the price plunged below the 1.27000 level in the European session, the price continued to decline in the next session reaching 1.26250.
The price's drop back below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart suggests that the bearish price movement will continue.
Next, the 1.26000 level will be the focus to be tested and the price reaction will be observed for further price movement indicators.
If the price breaks through, the price will go to the support zone at 1.25000.
On the other hand if the market movement situation changes again, investors may see a jump to the 1.27000 level again.
Once that initial resistance is overcome, the upside will retarget the 1.28000 zone as exhibited in last week's move.
