The strengthening of the US dollar that was successfully maintained on Wednesday's trade yesterday also depressed the price on the GBP/USD currency pair chart.
However, the Pound managed to resist the urge by the US dollar to push the price back up as shown in the New York session yesterday.
The market is likely to react to a speech by the Governor of the central bank of England (BOE) Andrew Bailey who emphasized that the inflation rate is too high and needs to be brought down to the target level of 2%.
This signals that the central bank still needs to implement monetary policy tightening to achieve the objective.
Therefore, investors await a clearer indication for further movement on the GBP/USD chart.
The drop that was displayed yesterday reached 1.24200 for the lowest price record in this 3-week period but investors saw a rebound towards the end of the New York session.
A jump of around 80 pips re-tested the 1.25000 concentration level but was seen struggling to continue rising higher before the slowdown around that continued into the early Asian session this morning (Thursday).
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The price which is also flat on the Moving Average 50 (MA50) line on the 1-hour time frame on the GBP/USD chart is being watched by investors for price direction indicators.
If the surge continues today, the price moving above the MA50 and crossing the 1.25000 level will expect a higher rally testing the 1.25400 zone.
The continued increase will reach the level that was the focus of last week's trading which is at 1.26000.
However, if prices plunge again towards the end of this week's trading, the support zone at 1.24000 will be a target to test after yesterday's decline failed to touch it.
If 1.24000 is also broken by the price, a lower decline will reach the target of 1.23000.
