GBP/USD 'Bullish' After UK CPI Data Released?

<p>&nbsp;The price movement on the chart of the GBP/USD currency pair on Tuesday yesterday was seen to fall back below the 1.22000 level.</p><p><br /></p><p>The 3-month average income index in the UK published in the European session yesterday saw a decline to 8.1% compared to the forecast of 8.3%.</p><p><br /></p><p>The fall in prices occurred in the European session continued at the beginning of the New York session when the United States (US) retail sales data published has strengthened the US dollar for a while.</p><p><br /></p><p>However, the strengthening could not be sustained when the US dollar again moved weakly until the end of the session and the price bounced back up to the 1.22000 level.</p><p><br /></p><p>Today's (Wednesday) focus on UK inflation data published at the start of the European session saw a positive reaction to the Pound.</p><p><br /></p><p>Expected to fall to 6.6%, the UK's annual inflation reading in September is seen to remain at 6.7% as in the previous month.</p><p><br /></p><p>This will make it more difficult for the central bank to continue to tighten monetary policy but at the same time want to balance economic stability.</p><p><br /></p><p><br /></p><p>The price on the GBP/USD chart which moved slowly in the Asian session has started to make an increase trying to break the 1.22000 level at the beginning of the European session.</p><p><br /></p><p>It is also a bullish signal when the price makes an increase past the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart.</p><p><br /></p><p>A higher move is believed to be towards the target of 1.23000 to 1.23300 which was the concentration zone tested last week.</p><p><br /></p><p>But on the other hand if the price plunges below the 1.22000 level again, the price drop will lead to around 1.21000 with a reaction around that will be observed.</p>