While the US dollar is still displaying a dismal performance from the beginning of the week, the Pound currency failed to take advantage of the situation when the increase in value is seen to be limited.
United States (US) retail sales data published in the New York session yesterday showed a decline for May, adding pressure to the movement of the US dollar.
However, the Pound failed to gain strength as investors remained cautious ahead of UK inflation data to be published today before the focus turns to the Bank of England (BOE) policy meeting on Thursday.
Price movements on the chart of the GBP/USD currency pair were also seen limited in a slow range on Tuesday yesterday.
The price is hovering around the 1.27000 zone which was the focus of the previous few weeks.
At the end of last week, the price had fallen to around 1.26600 but at the beginning of this week, the price slightly recovered to around 1.27000.
The price movement is back above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart which gives an early indication that the price increase could happen again.
The price increase if continued is expected to return to the 1.28000 focus zone that has been tested in the previous weeks.
On the other hand, if the price plunges below the 1.27000 zone, investors should prepare for a further decline in price.
With the impact of the latest data and meeting, the price could plunge to around 1.26000.
