Once again a change in price direction occurred on the chart of the GBP/USD currency pair where the price increase was exhibited during yesterday's Wednesday trading.
In the previous day, the price showed a decline up to the concentration zone of 1.27000.
After observing the price reaction in the zone, the price was tested several times before it rose again after failing to break through lower.
With the uncertain market environment ahead of the United States (US) inflation report, the US dollar weakened again in the market, causing the price increase to occur.
The price increase in yesterday's New York session has crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart, giving early suggestions for a resumption of the bullish trend.
Continuing trading in the Asian session this morning (Thursday), the price that opened at around 1.27300 has continued to rise to the height of 1.27700.
Seen the highs reached last Friday and earlier this week were retested and prices have the potential to extend higher.
If it continues, the 1.28000 zone will be the price target and investors will watch the reaction in that important zone for an indication of the direction of further movement.
The latest price high can be targeted up to around 1.29000.
However, if the price goes down again, the 1.27000 level will be approached again which previously served as a support for the price.
If it breaks down, a bearish price pattern will be displayed and it is expected to move towards the concentration zone at 1.26000.
