GBP/USD Crawls Slowly At $1.2700 'Sprout'


 After a jump of 100 pips on Tuesday, the price movement on the chart of the GBP/USD currency pair was back to flat on Wednesday's trading yesterday.

After the surge reached the target of 1.27000, the price then flattened at that resistance zone throughout the day yesterday as the market focused on the coming economic data.

Saving the US dollar from continuing to deteriorate further, the United States (US) Gross Domestic Product (GDP) data for the third quarter recorded an increased figure for the second reading to 5.2% beating the forecast of 5.0%.

This also limits the bullish pattern to continue on the GBP/USD chart, but analysts remain to see risks to the movement of the US dollar at the close of trading this November.

Next, the unemployment benefit claims data and the personal expenditure index of US consumers will also be observed in the New York session tonight which will influence the further movement of the US dollar.

On the GBP/USD chart, prices were flat until New York and continued at the opening of the Asian session this morning around the 1.27000 zone.

However, the price movement is still seen to remain above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the chart, which continues to signal a bullish price trend.

If the price succeeds in extending the surge from the current 1.27000 zone, the price increase is expected to reach 1.28000 or continue the increase towards around 1.29000.

On the other hand, if the decline in price is displayed following yesterday's horizontal movement, the price is likely to signal a trend change after declining below the MA50 support.

The price drop will continue to around 1.26000 or a lower concentration zone at 1.25000.