Despite High UK CPI, GBP/USD Fails to Continue Price Increase

thecekodok


The Pound failed to maintain its strengthening after the reaction to the latest UK inflation report published in the European session yesterday (Wednesday).


UK manufacturing and services PMI data will be scrutinized by investors which could drive further movement in the Pound at the end of the week.


In addition, the upcoming Jackson Hole symposium event has made investors more cautious to wait for clearer market indicators.


The GBP/USD currency pair chart is still seen to maintain a bearish movement pattern despite a price rebound when the data was published yesterday.


The price increase tested the resistance level of 1.35000 after the UK inflation rate recorded a higher-than-expected figure for the July reading.


However, the price failed to continue the increase higher when it was seen to fail to overcome the Moving Average 50 (MA50) resistance line on the 1-hour time frame on the GBP/USD chart.


The price made a decline again and reached around 1.34500 in the New York session yesterday before moving horizontally until the Asian session this morning (Thursday).


Expectations for further declines in price will test the 1.34000 level which was support for the price in the previous week's trading.


A break lower will push the price to continue the bearish movement towards the next focus level at 1.133000.


On the other hand, if the price makes a rebound upwards, the resistance at 1.35000 will be tested again like yesterday.


Successfully breaking through that barrier will expect a higher rise towards the important resistance zone of 1.36000.