The bullish pattern displayed on the chart of the GBP/USD currency pair was previously seen stalled after getting stuck at the resistance level of 1.27000.
The recovery of the US dollar from the previous decline has extinguished the momentum of the uptrend movement.
The US dollar had previously weakened significantly after the United States (US) inflation data came in with a reading that fell, in line with market forecasts.
However, expectations for the US dollar to weaken until the end of the week were misplaced when there was a change in trading direction yesterday.
On the GBP/USD chart, the rally driven above the 1.26000 level has previously reached the target level at the 1.27000 high.
However, the level becomes an obstacle for the price if it fails to be passed and then the price starts to bounce again.
Yesterday's price drop reached around 1.26430 but is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart.
If the price drops below the boundary line, it will be an early signal to investors for a continued price decline.
The closest level the price will hit is at 1.26000 before continuing to decline even lower.
Meanwhile, if the price testing the MA50 line bounces back up again, the resistance at the 1.27000 level will try to be broken before the price records the latest high level.
The next target is for the price towards the concentration zone at around 1.28000.
