The GBP/USD currency pair chart is still seen searching for a clearer direction with price fluctuations occurring yesterday around the 1.28000 zone.
Market focus is on the announcement of a 90-day tariff suspension by United States (US) President Donald Trump after just a few hours of the new tariff round starting.
In addition, Trump also imposed additional tariffs on China, bringing the total tariff to 125%, up from the previous 104%.
The tension in the tariff war between the two giant economies continues, but the announcement of the tariff suspension is seen as a temporary relief for the previously risky market.
The US dollar strengthened after Trump's announcement, but investors remain wary of volatile price movements ahead of US inflation data to be published today (Thursday).
On the GBP/USD chart, the price increase in the Asian session yesterday, which passed the 1.28000 zone, reached a height of 1.28600 before retreating down in the next session to reach the 1.27500 level.
The price rebound at the end of the New York session once again passed 1.28000 and continued the increase in the Asian session this morning, testing the height reached yesterday.
If the price movement continues higher than yesterday, it is seen to test the focus zone at 1.29000.
Next, a clearer bullish movement signal will push the increase to the next level around 1.3000.
However, if the direction changes to decrease again, the price is likely to be traded below the 1.29000 zone again.
Continuing the decline, the support zone at 1.27000 is expected to be tested before the price reaction around that will signal the next movement.
