GBP/USD Climbs Another 100 Pips Because of US CPI Yesterday!

<p>&nbsp;The price movement on the chart of the GBP/USD currency pair on Wednesday yesterday also displayed a follow-up rising pattern affected by the reaction to the published United States (US) inflation data.</p><p><br /></p><p>The latest inflation figure which fell to 3.0% in June is seen to be getting closer to the central bank's target and is expected to have a continued weakening effect on the US dollar at least towards the end of the week.</p><p><br /></p><p>This leaves room for the Pound currency to continue strengthening its value, but investors will be cautiously watching the release of UK economic growth data in the European session shortly.</p><p><br /></p><p>If observed on the GBP/USD chart yesterday, the price initially made a decline first in the European session towards the important level of 1.29000.</p><p><br /></p><p>However, the price did not extend lower and remained above the support level of the Moving Average 50 (MA50) on the 1-hour time frame of the chart.</p><p><br /></p><p>The next session saw a jump of around 100 pips following the reaction to the published CPI data until the price touched the concentration level of 1.30000.</p><p><br /></p><p>That level became resistance and the price leveled below it until the end of the New York session.</p><p><br /></p><p><br /></p><p>A slight increase past the 1.30000 level was shown in the trades that continued into the Asian session this morning (Thursday) with the expectation that the bullish pattern will continue.</p><p><br /></p><p>The target for the next increase is to reach the resistance level at 1.31000 while continuing to record the latest high level.</p><p><br /></p><p>On the other hand, if there is a reversal of movement towards the end of the week, investors can expect the decline to re-enter yesterday's 1.29000 support.</p><p><br /></p><p>Dropping lower and also moving below the MA50 level would expect a trend change to occur and the price could head up to around 1.28400.</p>