The attempt to rise on the GBP/USD currency pair chart on Wednesday failed as the uncertain market situation prompted a price pullback.
The US dollar began to show a gradual strengthening following the market sentiment that is considered risk-on with concerns over the Russia-Ukraine war issue returning to the spotlight.
In the European session yesterday, UK inflation data was published, seeing a rebound to 2.3% for October after a previous decline of 1.7%.
The pound reacted positively at the beginning of the data release to surge, but failed to continue the momentum as it fell back in the following trading sessions.
As can be seen on the GBP/USD chart, the surge in the European session yesterday tested the 1.27000 resistance level but the price retreated back down.
Until the New York session, the price dropped to around 1.26300 and gave a bearish signal with the price movement being below the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the chart.
The price movement that ended around 1.26500 remained flat until trading continued throughout the Asian session this morning (Thursday).
Expectations for the price to continue to decline will see the support level of 1.26000 as the focus to be tested.
If it breaks through that level, the latest low will be recorded by the price with the next target moving to 1.25000.
However, if the price makes an increase, the resistance of 1.27000 will be tested again for the price to exit the horizontal zone since the end of last week.
If the increase continues while giving a bullish signal, it will target around 1.28000 or a higher increase to reach 1.29000.
