The chart of the GBP/USD currency pair broke the latest 1-year high when the price surge was displayed yesterday.
The pound showed a positive reaction following the UK inflation data published in the European session when the consumer price index (CPI) reading for June remained at 2.0% compared to forecasts for a drop to 1.9%.
Coupled with the situation of the depreciation of the US dollar yesterday, the Pound managed to continue its increase in value yesterday, but investors will remain cautious ahead of the next indicator data.
At the beginning of the European session today (Thursday), the UK employment data report will be observed which is also an important indicator for the central bank to assess the current health of the economy.
The price increase to the latest high level yesterday reached 1.30400 after the resistance level of 1.30000 was successfully broken.
However, towards the end of the New York session, the price retreated back to the 1.30000 level and remained flat around that area continuing into the Asian session this morning.
Despite showing a decline, the price is still moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart, which indicates bullish movement.
A higher move is expected after the price rebounds from the 1.30000 level before surpassing yesterday's high.
A new level will be recorded with the price target to reach the next concentration zone at 1.31000.
If the situation changes, a drop below the 1.30000 level and beyond the MA50 support will be an early sign of a trend change.
The price is likely to reach the 1.29000 level again or continue the decline to lower levels.
