The Pound experienced a change in its movement pattern this week influenced by some important UK economic data published.
A positive UK jobless rate on Tuesday supported the Pound's rise, but momentum began to falter as markets digested UK inflation data published yesterday that fell short of expectations.
In addition, the focus was directed to the United States (US) inflation data report published in the New York session yesterday, which saw a lower figure than forecast.
However, investors are looking at the performance of both the Pound and US dollar equivalents on Wednesday.
For today (Thursday), the focus will be on UK economic growth data which will influence the movement of the Pound in the European session, and US retail sales data in the New York session will drive the US dollar.
If we examine the movement on the chart of the GBP/USD currency pair, the rising price pattern successfully continued until last Tuesday after the resistance at the 1.28000 zone was breached.
Prices that reached a high of 1.28700 showed a pullback as the market examined UK and US inflation data published on Wednesday.
Slow price action resumed trading in the Asian session this morning around 1.28300 as prices were seen testing the Moving Average 50 (MA50) support line on the 1-hour time frame on the GBP/USD chart.
If the price bounce is displayed, the price increase is able to record the latest weekly high above the previous level.
Next, the 1.29000 zone is seen as a target for the price to reach and it is expected that there will be an attractive price reaction around that area for investors to pay attention to.
However, if the price on the other hand continues to decline, the 1.28000 zone that has been penetrated before will be approached again.
Price moving lower below that zone would lead to the expectation of a further decline in price to continue to around 1.27000.
