Of course, a brisk price movement is expected in the New York session yesterday with the main focus of the market this week directed at the United States (US) inflation data.
The chart of the GBP/USD currency pair showed drastic price fluctuations in the range of 150 pips before closing the trade above the $1.2200 price level.
The US consumer price index (CPI) met the forecast figure of 6.5%, lower than the previous 7.1%, showing the 6th consecutive month of declining inflation.
This further strengthens the view for the Federal Reserve (Fed) to slow down their monetary policy before.
Coupled with the comments of several Fed Presidents who are starting to see that it is time for interest rate hikes to be slowed down to 25 basis points only.
Although the US dollar showed a mixed reaction when the data was published, it eventually moved weakly again at the end of the session.
The focus at the end of the week will be on UK economic data releases with economic growth readings taking center stage.
The published data is expected to influence the movement of the Pound currency in the European session shortly.
When the price drop on the GBP/USD chart yesterday, once again the support level of 1.21000 was tested and the RBS (resistance become support) zone still managed to bounce the price upwards.
Crossing the Moving Average 50 (MA50) level again on the 1-hour time frame on the GBP/USD chart, the price hovering slowly above the 1.22000 level in the Asian session this morning (Friday) is expected to continue the bullish trend movement.
A further increase is seen to be towards around 1.23000 and is likely to be able to reach the height of 1.24000 if the US dollar continues to weaken in the next week's trading.
But watch out for movement at the end of the week that could show a temporary drop in price.
The decrease that occurs is seen to once again test the support level of 1.21000 and the price will respond to that zone.
Breaking lower will be the initial signal of a bearish price movement before heading to around 1.20000 again or lower in the 1.19000 zone.
