Despite moving in a flat zone, the GBP/USD currency pair chart managed to reach new highs on the rise displayed in the New York session yesterday.
The 1.27000 focus level has been reached and is seen as the latest resistance level as the price has made a further decline after testing it.
The increase was recorded but the price is still seen moving in a flat zone of 100 pips range between 1.27000 to 1.26000 throughout this week.
The price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart also suggests that the upward pattern will continue.
Resuming trading in the Asian session this morning (Thursday), the price retreated slowly to around 1.26600 approaching the MA50 support line that investors are watching for further direction.
If the price manages to bounce back up, the resistance at 1.27000 will be tested again like in the previous New York session.
After the resistance is clearly broken, a new high will be reached with the target reaching the 1.28000 zone.
On the other hand, if the price is further pressured down, the closest support is at 1.26000 to keep the price in the horizontal range.
If the price falls lower beyond 1.26000, a more clear bearish movement will be displayed with the target shifting to around 1.25000.
The US economic growth report will be watched today which could influence the direction of further price movements.
