After the UK employment report was published in the European session yesterday, the Pound currency was seen not showing significant movement.
However, compared to the US dollar, the Pound still managed to maintain good trading at the beginning of this week after an excellent performance last week.
Today's focus (WEDNESDAY) will be on the UK inflation report which will be observed in the European session with expectations of an increase in January inflation figures.
Examining the price movement on the GBP/USD currency pair chart, the price is still seen to be flat around the 1.26000 zone from the beginning of the opening of trading this week until yesterday.
The price movement above the 1.26000 zone in the Asian session this morning was seen to be above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart which was seen as a signal for the price to continue the bullish pattern like last week.
The UK inflation data published in the European session is expected to have an impact on clearer price movements after this.
If a strong price rally is shown, a new high will be recorded with the target for the 1.27000 zone to be tested.
This will push the price to a new 9-week high and return to the trading levels of last December.
On the other hand, if the situation is different, a drop below the 1.26000 zone will be an early warning sign of a fall lower.
The price decline is expected to return to around 1.25000 first before extending towards the focus level at 1.24000.
