The British Pound has remained weak for the past few sessions with UK economic data being the focus this week.
In the European session today (Wednesday), UK inflation data will be released which is seen as a driver for the Pound as the latest report will provide important guidance to the Bank of England (BOE) in setting monetary policy.
Next, UK Gross Domestic Product (GDP) data will be released on Thursday and on Friday it will be followed by retail sales data.
Meanwhile, market attention is also being focused on US inflation data with the consumer price index (CPI) to be released in the New York session tonight.
The US dollar was slightly weaker in early trading this week and was also influenced by US producer inflation (PPI) data released yesterday, reducing some pressure on the Pound's movement.
The GBP/USD currency pair price chart saw mixed movements with a change in direction in the European session and the New York session yesterday.
Initially, the price had fallen to around 1.21400 before the US PPI data that weakened the US dollar pushed the price back up to the 1.22000 level.
The price has been slowly leveling off this morning's Asian session trading around 1.22000 with a bullish signal being observed when the price is now above the Moving Average 50 (MA50) support line on the 1-hour time frame of the GBP/USD chart.
If the price surges higher, last week's focus level at 1.23000 will be the focus again to be tested.
That level is expected to be a resistance that the price needs to test before signaling the direction of further movement.
However, if the price plunges from around 1.22000, a bearish signal will be observed before the price declines towards the target at the 1.21000 support that was broken earlier in the week.
