The US dollar reversed direction to move weak again on Thursday trading yesterday as the market was cautiously awaiting the latest indication on the United States (US) PCE price index data in the New York session today.
Other major currencies took advantage of the US dollar's weakness, but analysts warned to remain vigilant for any risky possibilities.
Pound Sterling rose slowly yesterday only halving the previous day's losses as pressure remained on the British currency.
The UK economic situation does not give confidence with the decline in inflation and the outlook for households affected by the pressure of high living standards.
Former Bank of England (BOE) MPC member Michael Saunders sees an interest rate cut at the August meeting and interest rates will reach 3.5% at the end of 2025.
There was a price increase on the chart of the GBP/USD currency pair in the European session yesterday, but it only reached around 1.26700.
Prices retreated slightly towards the close of the New York session and a slow decline is still seen in the Asian session this morning.
Price movements that move below the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the GBP/USD chart still give a bearish signal for the price.
A lower drop is expected to test 1.26000 as a price focus support zone.
It is not impossible for the decline to continue to break through that zone before the target shifts around 1.25000.
On the other hand, if a rebound is triggered at the end of this week's trade, breaking through the MA50 barrier will see the price retest the 1.27000 resistance level that failed to break through earlier in the week.
A higher rise will signal a change in the bullish trend further pushing the price to reach the 1.28000 zone.
