3-Month Low, GBP/USD Drops Again To $1.2400!

<p>&nbsp;The price chart of the GBP/USD currency pair showed a decline to yesterday's recent lows as both the Pound and the US dollar traded against each other.</p><p><br /></p><p>This is driven by economic data published this week which is different for the UK and the United States (US).</p><p><br /></p><p>US consumer and producer inflation data recorded an increase. So did retail sales for the month of August which soared.</p><p><br /></p><p>Meanwhile, the unemployment rate in the UK rose in line with forecasts and the UK economic growth showed a contraction which is seen to put pressure on the central bank to set monetary policy at next week's meeting.</p><p><br /></p><p><br /></p><p><br /></p><p>Examining the movement on the GBP/USD chart yesterday, the price hovering slowly at the resistance of 1.25000 finally displayed a plunge to reach the level of 1.24000 at the end of the New York session.</p><p><br /></p><p>The 1.24000 support level is the expected target for price to test it and a slow horizontal price movement around it resumed trading at the opening of the Asian session this morning (Friday).</p><p><br /></p><p><br /></p><p>This bearish indication will push the price to continue its decline lower to record the latest 4-month low.</p><p><br /></p><p>The target is to reach the next concentration level which is at 1.23000.</p><p><br /></p><p>However, if the price shows a rebound from the 1.24000 support, the price increase is expected to return to the 1.25000 level.</p><p><br /></p><p>But it will face the Moving Average 50 (MA50) obstacle in the 1-hour time frame on the chart before returning to signal a change in the bullish trend for the price.</p><p><br /></p><p>Once the trend changes, then the price will be expected to make a higher increase towards the 1.26000 level.</p>