After signals of a change in the bullish trend were initially identified on the previous chart of the GBP/USD currency pair, the price surge has continued in Thursday trading overnight as influenced by the published inflation data.
United States (US) user price index (CPI) data recorded a lower decline than forecast for June, triggering a significant depreciation in the US dollar currency.
The pound also took the opportunity to continue strengthening after showing positive signs in the European session before returning when UK economic growth data was published.
Assessing UK Gross Domestic Output (KDNK) data for May, monthly economic growth recorded better readings compared to previous figures.
With relatively clear indications of the price direction of both currencies, the GBP/USD chart managed to record the latest highs in the 12-month period.
The price spike after the CPI last night broke through the support level at 1.29000 and then reached a high of 1.29500.
The price retreated again to the level of 1.29000 and leveled off around that point continuing trading in the Asian session this Friday morning.
The expected bullish price movement is above the support line of the Moving Average 50 (MA50) on the 1 hour time frame, predicting a continued increase higher.
The price's higher target is to reach the 1.30000 zone after trading at the highest level since July 2023.
If the price falls again below the 1.29000 level, the pattern of price decline is likely to be exhibited again.
Prices are at risk of falling again to around 1.28000 which is the focus zone for trading this week.
