The Pound currency escaped a lower fall as the US dollar weakened in the market towards the end of the week.
The focus was on the United States (US) inflation data published in the New York session yesterday but did not have a significant impact on price movements.
The market was more driven by the positive development of the US-China trade negotiations when several matters were agreed upon by both parties.
The positive sentiment of the negotiations that ended yesterday provided relief in the market but had a negative impact on the value of the US dollar.
The focus was on the UK economic growth report in the European session, affecting the movement of the Pound currency while the US producer price index (PPI) data will be given attention in the next session and is expected to drive the US dollar.
The GBP/USD currency pair chart on Tuesday showed a decline reaching around 1.34600 but rebounded on Wednesday.
The increase was clearly displayed in the New York session yesterday up to 1.35600 before slowing down again to end the closing trade of the session.
Following the bullish signal that the price had been above the Moving Average 50 (MA50) support line on the 1-hour timeframe on the GBP/USD chart, the price continued its upward trend in the Asian session this morning (Thursday) approaching the resistance zone of 1.36000.
However, the momentum was interrupted by the UK monthly growth figure in April recording -0.1%, indicating a worse-than-expected contraction.
The price fell with the initial reaction to the data release and if it continues, the 1.35000 level could be the target to be approached again.
An extended fall below that level would provide a clearer signal for bearish movement for the price.
On the other hand, if the increase continues, last week's high reached at 1.36160 will be surpassed for the price to record the latest 3-year record high.
For the target for a higher increase, the target shifts to the top of 1.37000 but must first pass the resistance zone of 1.36000 which still restricts the price's advance.
