The pound was supported by positive sentiment on the release of the UK employment data report in yesterday's European session which saw the focus on the unemployment rate falling from 3.8% to 3.6% in August.
However, the Pound's performance was overshadowed by the frenzy of the US dollar in the New York session as investors digested US consumer price index data published that showed inflation was still strong compared to expectations of a decline.
This has prompted a drastic jump in the value of the US dollar yesterday with investors regaining confidence for the Federal Reserve (Fed) to continue aggressive interest rate hikes for next week's FOMC meeting.
Investors will also be wary of the release of UK inflation data in the European session soon which may have an impact on price movements.
On the chart of the GBP/USD currency pair, the price has exhibited a daily decline of around 250 pips with the decline starting from a high of around 1.17400 up to 1.15000 at the end of the New York session.
The price hovered slowly in the vicinity until it continued in the Asian trading session this Wednesday morning.
Investors will assess the tendency for prices to continue to decline further today after a bearish signal that prices have broken past the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the GBP/USD chart.
If the decline continues, the support zone at 1.14500-1.14000 will be the focus for retesting after last week's decline to the zone recorded the lowest level since trading in 1985.
For a further decline if extended beyond that important zone, the next price target is to head around 1.13000 or 1.12000.
On the other hand, if the Pound manages to absorb the pressure and recover to rise in the market, the price has the potential to make a comeback with the initial resistance at 1.16000 akna in focus.
A higher increase will reach the height level reached yesterday if there is a signal of a change in the price trend again.
