The GBP/USD currency pair chart has shown a jump of over 100 pips in Tuesday's trading yesterday, indicating a change in price direction.
The situation was driven by previously risky market sentiment that has eased again with the risk of a tariff war temporarily decreasing.
Investors are shifting their focus to the US inflation data that will be published in the New York session tonight as a new clue to the Federal Reserve (Fed) in setting its monetary policy.
A major price movement is expected to be impacted by the important data figures published against the US dollar.
The GBP/USD chart yesterday reached the 1.23300 level before jumping above the 1.24000 level and then reached a high of 1.24500 at the end of the New York session.
The strong price jump also broke the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart, indicating a bullish signal.
Price movement slowed throughout the Asian session this morning (Wednesday) at the high level reached in the previous session.
Prices are seen to be inclined to continue their further rise towards the focus level at 1.25000.
If successful in breaking through that level, the high of 1.25500 reached last week will be challenged again.
On the other hand, if the price makes a further decline, the level of 1.24000 will be tested first which is likely to support the price from falling lower.
A further drop in prices could occur driven by the impact of published inflation data so a decline towards around 1.23000 can be expected.
