GBP/USD Holds in $1.2400 Zone, Another Surge Expected?


 Observing the price movement on the chart of the GBP/USD currency pair, the price did not continue the downward trend last Wednesday but instead leveled off and slightly increased on Thursday yesterday.

The US dollar currency is seen to be still at risk of weakening after other inflation and economic data from the United States (US) are giving an indication of the direction of the Federal Reserve's (Fed) monetary policy.

The drop in prices that occurred on Wednesday was also seen to be driven by the depreciation of the Pound which reacted to UK inflation data published lower than forecast.

However, prices stabilized towards the end of the week and investors remained cautiously watching the latest indications in the market.

On the GBP/USD chart, the price has made a decline from the previous high of 1.25000 and is hovering in the 1.24000 zone.

There was an increase above the zone in yesterday's New York session, but the price was held by the resistance level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, which is an indicator of price movement.

The price dropped back to the 1.24000 zone and the price movement that remains below the MA50 suggests a bearish trend is about to happen.

If the US dollar succeeds in strengthening and suppressing the price to fall lower, the price is seen to return to around 1.23000 which was the focus before.

On the other hand, if the price manages to bounce back from the 1.24000 zone, the resistance level at 1.25000 will once again be tested.

After successfully breaking through, the price will record the latest high level with the target to reach up to 1.26000.