The price decline did not occur on the GBP/USD currency pair chart after investors saw early signs of a trend change at the beginning of the week.
The current situation of price movements is influenced by the development of the increasingly heated tariff war, which is further pressuring the US dollar.
Ahead of the United States (US) inflation data to be published tonight, concerns about the world's largest economic recession are increasing.
At the close of trading on Monday, the price had fallen below the 1.29000 zone, which expected the possibility of the bullish trend in the previous week to end.
The opposite happened when the rebound was shown on Tuesday yesterday, breaking through 1.29000 again.
The price also moved back above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart, which suggests that the bullish trend will continue.
The price tends to maintain momentum after a daily increase of almost 100 pips recorded yesterday.
The price increase until the end of the New York session surpassed last week's level and recorded a new 4-month high at 1.29600.
In the Asian session this morning (Wednesday), the price was seen to retreat slightly towards the 1.2900 level again, but investors expect the price to continue the upward trend higher at the target of 1.30000.
On the other hand, if this does not happen, the price falling below the 1.29000 level will again invite signals for bearish movement.
The price decrease will target the focus zone at 1.28000 and then at 1.27000.
