The price movement on the chart of the GBP/USD currency pair did not give a clear direction on Tuesday's trading yesterday, but analysts still see the price remaining in a bearish trend with a slow tempo.
The US dollar traded well in the Asian and European sessions yesterday, but in the New York session it slightly weakened following the United States (US) manufacturing and services PMI data for May published yesterday mixed.
While the Pound, which failed to show a good performance, it is feared that it may experience another fall in value today (Wednesday) following the market will be faced with the release of UK inflation data at the beginning of the European session shortly.
After several months of UK inflation rates remaining above 10%, the latest inflation expectations for the April reading were slightly down to 8.2%. But be reminded that it is still at a high level.
Therefore, the price that also remains hovering below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart is likely to continue the bearish pattern after this.
The decline in price was shown yesterday past the 1.24000 level and reached almost around 1.23700, but rebounded in the New York session around 60 pips and closed trading above 1.24000.
If a decline takes place in the European session, the price is likely to surpass the level reached yesterday before continuing to decline lower.
The target is towards 1.23000 for the price to record the latest 7-week low.
However, if the price breaks above the MA50 barrier and signals a change in price direction again, the upside will test the resistance at 1.25000.
Next, the continued increase will test 1.25400 before continuing the climb to reach the previous concentration zone which is at the height of 1.26000.
