Price action on the chart of the GBP/USD currency pair is getting more muddled as investors await some key focal events for the week.
The first is the FOMC meeting early Thursday morning for the announcement of interest rates before the market wants to get a clearer indication from Federal Reserve (Fed) Chairman Jerome Powell regarding interest rate cuts.
The US dollar is expected to receive a big impact in the market until the end of the week.
Second, the central bank of England (BOE) policy meeting tomorrow will drive the trading direction of the Pound after this.
But before that, UK inflation data will first be focused on issues in the European session shortly.
Examining the GBP/USD chart, the price was initially seen to be pressured to fall in the European session yesterday below the level of 1.27000 to reach around 1.26700.
However, the price rebounded in the New York session above the 1.27000 level again and was seen testing the barrier line of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.
The MA50 barrier is seen as still difficult to break through when trading has resumed in the Asian session today (Wednesday).
If the bearish price pattern continues, the price will again move below the 1.27000 level and surpass the level reached yesterday.
Lower falls expect the 1.26000 zone to be tested as one of the 'hotspot' zones for prices.
As for expectations for price increases, the resistance is at the 1.28000 zone to be tested before the continued increase will reach the resistance zone at 1.29000.
Investors need to be careful to expect volatile price movements with upcoming meeting data.
