The price movement chart of the GBP/USD currency pair at the opening of the market earlier this week continues to see prices continue to rise higher in the Asian session.
The US dollar remained traded weakly following the United States (US) inflation data published last week which further strengthened expectations for the Federal Reserve (Fed) to slow down the tightening of their monetary policy.
While the Pound took the opportunity to rise higher after the UK economic growth data published last week was not as bad as expected.
Despite recording low monthly growth, the numbers were better than forecasts for a contraction.
The focus will be on UK inflation data this week which is still expected to be at a high level and will prompt the central bank to tighten policy at its early February meeting.
If observed on the GBP/USD chart, the price has made an increase from the 1.22000 zone and headed for the 1.23000 zone in the Asian session this morning.
This is the highest level recorded by the price for a 5-week trading period.
The resistance zone at the height of 1.24000 will be the target for the next price test if the rise continues.
However, if the price decline occurs, the 1.22000 level will be the focus again for the price to test the RBS (resistance become support) zone.
Exceeding the support level of the Moving Average 50 (MA50) on the 1-hour time frame of movement on the GBP/USD chart will be an early indication of a bearish trend change.
The next price drop will continue towards the 1.21000 zone or even lower reaching 1.2000 again.
