The GBP/USD currency pair chart shows an upward price pattern by continuing the momentum of the surge at the beginning of the week.
In the Asian session this morning (Wednesday), the price jumped to a new 3-year high after surpassing the highest level reached at the end of April.
The pound remained on the rise as the US dollar continued to trade weakly in the current situation that still puts pressure on the United States (US) economy.
However, investors were cautious at the opening of the European session following the UK inflation data being the main focus of the market today.
The annual reading for the UK consumer price index (CPI) jumped to 3.5% higher than the forecast of 3.3%.
This followed the figure that fell to 2.6% in the previous month's reading. Meanwhile, the core inflation reading jumped to 3.8%, surpassing the forecast of 3.6%.
If observed, the price surge on the GBP/USD chart on Monday was stopped at 1.34000 and the price was flat below that resistance level throughout Tuesday.
The price increase that began in the New York session continued in the Asian session this morning, breaking through the 1.34000 resistance.
The price increase continued after the UK inflation data was published in the European session, but investors are still cautious about digesting the initial impact of the movement.
The price increase is expected to reach the target level of 1.35000 while continuing to record new record highs.
However, if the price retreats back down, the 1.34000 level that has been broken is likely to be approached again and the price reaction will be observed.
A decline below it will trigger a bearish signal for the price with the expectation that the price risks falling back to around 1.33000.
