The bearish pattern continued on the chart of the GBP/USD currency pair on Wednesday following the price plunge that started the previous day.
UK inflation data was published in the European session yesterday which saw the annual consumer price index (CPI) reading of 4.0% compared to the forecast of 4.1%.
The price dropped lower yesterday after testing the 1.26000 level which serves as a price resistance.
The decline in price has reached around 1.25350 before a slow price rebound is shown towards the end of the New York session to close at around 1.25600.
The price movement remains slow and is still below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart, indicating bearish movement.
The market will also examine the UK economic growth data that will be published in the European session shortly.
If the latest reading comes in with a gloomy figure, the Pound will continue to experience continued depreciation towards the end of the week.
A further decline would be expected for the price to reach the 1.25000 support zone after the previous week's decline of almost 20 pips to touch it.
If the breakout is lower, the bearish price movement will continue with the target moving to 1.24000.
On the other hand, if there is a price surge again, the MA50 barrier and the 1.26000 level will be crossed before expecting a higher increase.
The target is to overcome this week's level before testing the 1.27000 level which is the focus for the price.
