A bullish attempt on the chart of the GBP/USD currency pair on Wednesday yesterday failed as the volatile market situation prompted a price pullback.
The US dollar began to show a gradual strengthening following market sentiments that were considered risky with concerns over the issue of the Russia-Ukraine war returning to the spotlight.
In yesterday's European session, UK inflation data was published which saw the figure rebound to 2.3% for October after a previous decline of 1.7%.
The pound reacted positively at the start of the data release to surge, but failed to continue the momentum as losses returned in subsequent trading sessions.
It can be observed on the GBP/USD chart, the surge in the European session yesterday tested the resistance level of 1.27000 but the price retreated back down.
Until continuing to the New York session, the price dropped to around 1.26300 and gave a bearish signal with the price movement below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart.
Price movements that ended around 1.26500 remained flat until trading resumed throughout the Asian session this morning (Thursday).
Expectations for the price drop to continue will see the 1.26000 support level become the focus to be tested.
If it breaks above that level, the latest low will be priced in with the next target moving to 1.25000.
However, if the price makes an increase, the resistance of 1.27000 will be retested for the price to leave the horizontal zone since the end of the last week.
The rise if continued while giving a bullish signal will target around 1.28000 or a higher rise reaching 1.29000.
See the picture of the GBP/USD pair price chart below for your technical analysis reference.
The chart displayed above uses the Saracen Market platform. Redeem a $5.00 no deposit bonus if you sign up today CLICK HERE – SIGN UP AND REDEEM NOW
