GBP/USD To Be Driven By UK Inflation Data In European Session

<p>&nbsp;The Pound showed positive price movements on Tuesday trading yesterday supported by the latest UK economic data published in the European session.</p><p><br /></p><p>Looking at the employment data report, wage growth in the UK in the second quarter posted a sharper-than-expected jump, sending the Pound up.</p><p><br /></p><p>Wages increase will make people spend more, the price of goods will increase, inflation will increase.</p><p><br /></p><p>Thus, this situation gives an early signal that the central bank will implement monetary policy tightening by raising the current interest rate.</p><p><br /></p><p>The focus will be on the UK inflation data that will be published in the European session shortly.</p><p><br /></p><p><br /></p><p><br /></p><p>On the price chart of the GBP/USD currency pair yesterday saw an increase in the European session reaching a height of 1.27500.</p><p><br /></p><p>However, the strengthening of the US dollar towards the end of the New York session has pushed the price back to the focus level of 1.27000.</p><p><br /></p><p><br /></p><p>Horizontal price movement around that early in the Asian session this morning (Wednesday) and was also seen crossing above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.</p><p><br /></p><p>A bullish signal will be assessed if the price bounces back in the 1.27000 zone and will try to overcome yesterday's highs.</p><p><br /></p><p>The continued higher rise will also test the SBR (support become resistance) zone at 1.28000 which became price resistance last week.</p><p><br /></p><p>Meanwhile, for the expectation of a price drop, a drop below the 1.27000 zone will expect the price to go to the support zone at 1.26000.</p><p><br /></p><p>Since the beginning of last August, the price has not yet managed to break through the zone which still managed to restrain the price from falling lower.</p>