The GBP/USD currency pair started strong at the Asian open on Wednesday as the market awaits the release of UK inflation data.
Early in the European session yesterday, the Pound jumped with initial data reaction to the release of the UK annual consumer price index (CPI) reading jumping to 3.5% in April.
The figure beat the 3.3% forecast, following a decline in the previous month's reading of 2.6%.
The initial price jump on the GBP/USD chart in the European session reached 1.34700, which is the latest record high for the price for a period of 3 years.
However, the momentum failed to continue, seeing the price reverse direction and make a decline again.
The price decline reached 1.34000, which was the resistance that the price had previously broken.
The price movement then leveled off above that level until trading resumed in the Asian session this Thursday morning.
The price is still above the Moving Average 50 (MA50) support line on the 1-hour timeframe of the GBP/USD chart, suggesting that the bullish trend is continuing.
UK and US manufacturing and services PMI data will influence price movements after this.
If the upward trend continues, yesterday's high will be overcome before the price records a new high again.
The target for a higher increase is 1.35000 as the latest focus level.
However, if the price makes a decline below the 1.34000 level and the MA50 support line, it will be a warning for a change in the price trend.
The decline that occurs will push the price back to around 1.33000 or lower.
