The pound sterling failed to sustain its upward momentum in trading on Wednesday night after the dismal reaction to the aftermath of UK inflation data published in the European session.
The UK user price index reading jumped to 9.0%, recording a 40-year high of inflation since 1982.
The harbourer's range to see the Pound strengthen misses if the decline in the prevailing value in the European session continues to the end of the New York session.
On the price chart of the GBP/USD currency pair, the price has shown a downward pattern from last night following the pound's decline while the US dollar has also regained its strength in the changing market mood again.
In retrospect, the price has presented a powerful surge since the beginning of the week to reach the level of the high of 1.2500.
However, this level becomes an obstacle for the price if the price drops back from that level last night, breaking through the 1.24000 support zone.
The price which broke around 1.2330 at the end of the New York session also signaled an initial bearish move by shrinking below the resistance level of the 50 Moving Average (MA50) on the 1 hour timeframe on the GBP/USD chart.
Further decline in the price will be expected to go to the next support zone around 1.2300-1.2280 before continuing the decline to last week's support zone around 1.2160.
However, if the price spike is successfully re-triggered in the trade at the end of this week, the resistance level at the high of 1.2500 will be tested once again.
A continued run higher is seen heading towards the 1.2600 resistance zone which was the pedestal of early May trading.
