As analysts have noted, previously important levels on the chart of the GBP/USD currency pair were again the focus of price hovering in yesterday's early week trading.
The resistance of 1.26000 was finally touched when the increase occurred in the European session yesterday, but then investors saw a price drop of more than 100 pips in the New York session to the 1.25000 zone again.
Uncertain movements are expected to continue this week and today the focus will be on the publication of the UK employment report at the beginning of the European session shortly, while the United States (US) inflation data awaits in the next session.
The US annual inflation rate previously stood at 4.9% and the forecast for the latest reading in May was slightly down to 4.1%.
After the decline in prices moved below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the GBP/USD chart, investors are ready for a signal for the start of a bearish trend again.
It is likely that the price will fall lower if today's decline breaks the support level at 1.25000.
The price will go to the next concentration level which is at 1.24000, where it became the price support last week.
However, if the price rebounds to make an increase again, the 1.26000 level will once again be tested for the price to try to pass it and continue the increase to a higher level.
The latest 5-week high level will be recorded if the increase successfully continues with the target to reach around 1.26800 which is the height reached at the beginning of last May.
