The Asian session on Tuesday yesterday saw the Pound Sterling strengthen against the US dollar and record its latest high since April 2018.
On the GBP / USD pair price chart, the price reached a high of around 1.39500 but the bullish momentum failed to maintain towards the 1.4000 target level.
The price decline was again on display following the re-strengthening US dollar which pressed lower prices during the New York session.
Investors who reacted to the strengthening of the US dollar significantly outperformed the Pound's previous positive performance.
The price declined below the Moving Average 50 (MA50) barrier level on the 1 hour price movement and kept investors alert for early signs of a trend change.
The price decline continued in the Asian session this morning (Wednesday) with the expectation that the RBS zone (resistance become support) 1.38600-1.38300 will be tested again.
If the price manages to bounce back from the zone, it is likely that the price will continue to rise to overcome the high level reached yesterday and head to the level of 1.4000.
On the other hand if the US dollar manages to strengthen and press lower prices, the lower price support level is seen in the RBS zone at 1.37000.
The next lower price fall will lead to a concentration level of 1.37000.
Investors will focus on UK inflation data to be published at the beginning of the European session and will affect the movement of the Pound.
