The GBP/USD currency pair chart shows a gradual increase continuing trading today (Wednesday).
However, there is still a small percentage for the price trend to change after a decline of around 500 pips that has been recorded since last week.
At the beginning of the week, the continued decline almost touched the 1.27000 level before the price bounced back from the support zone.
Yesterday Tuesday saw the price rise stall at the 1.28000 zone before the price continued to climb higher in the Asian session this morning.
The price rise that passed the Moving Average 50 (MA50) resistance line on the 1-hour timeframe of the GBP/USD chart gave an early signal for the bullish trend to begin.
The price rise is expected to head towards the focus zone at 1.29000 which has shown an interesting reaction in trading in recent weeks.
If the increase still manages to continue beyond that zone, a clearer bullish signal will push the price to a higher target level such as 1.30000.
On the other hand, if the upward pattern fails to be maintained, the price risks retreating back down towards the nearest focus level at 1.28000.
A slippage lower would expect the 1.27000 support zone to be tested after the price rebounded from the plunge at the beginning of the week.
In addition to the development of the tariff issue, investor attention will also be directed to the FOMC meeting minutes and American inflation data that will be published to drive the movement of the US dollar.
