The price movement on the GBP/USD chart was flat throughout Tuesday yesterday with investors remaining vigilant ahead of the US inflation data to be published today.
Investor concerns have also made the US dollar trade more 'stiff' since the beginning of this week after facing the FOMC meeting and the US NFP report last week which showed more attractive price movements.
As for the Pound, analysts believe the British currency will undergo a difficult trading period in the near future following a warning issued by England's central bank on the risk of an economic recession in Britain.
Failing to give a clear direction, the price on the GBP/USD chart is moving in the sideway zone with the resistance at the level of 1.24000 and the support level of the price is at the zone of 1.22800.
After US inflation data in the New York session tonight, the focus will be on the UK economic growth data for the first quarter published in the European session on Thursday.
If the price continues to decline lower, the support zone at 1.22800 will be tested before the decline beyond that zone will record the latest 2 -year low.
Expectations for a lower decline are seen heading towards around 1.21000 which was previously the price support zone in May 2020 trading.
However, if the price starts to rise again, the resistance at 1.24000 will be tested again after the price touches the SBR zone (support become resistance).
For a continued upside, the resistance zone at 1.26000 which was the focus of last week’s trading will be seen as a bullish target.
