Already Peaking Over 200 Pips, GBP/USD Falls Again 100 Pips!

<p>&nbsp;Having just enjoyed the gains made after a sharp fall in the US dollar, the Pound currency was again pressured by UK inflation data published yesterday.</p><p><br /></p><p>The UK's annual reading of the consumer price index (CPI) for October came in at 4.6% slower than the 4.7% forecast.</p><p><br /></p><p>This is also seen as a significant change in the inflation figure in the previous month which was recorded at 6.7%.</p><p><br /></p><p>Like the situation of the Federal Reserve (Fed), the Bank of England (BOE) is also seen to maintain the existing monetary policy or more towards slowing down the policy.</p><p><br /></p><p>Thus, this has had a depreciating impact on the Pound while the US dollar was seen to recover slightly yesterday from its biggest annual fall.</p><p><br /></p><p>Examining the price movement chart of the GBP/USD currency pair, the jump of more than 200 pips on Tuesday failed to continue on Wednesday yesterday.</p><p><br /></p><p>On the other hand, the price has plunged from the height of 1.25000 to around 1.24000 briefly testing the concentration zone.</p><p><br /></p><p><br /></p><p>In the Asian session this morning (Thursday), the price was seen to continue to decline below 1.24000 and also gave an early signal for a bearish movement when it broke past the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the GBP/USD chart.</p><p><br /></p><p>Further decline if continued is seen to lead to the previous focus zone around 1.23000 which is the surge zone that started last Tuesday.</p><p><br /></p><p>The next lower drop will target the 1.22000 level to retest the level that was last week's price support.</p><p><br /></p><p>On the other hand if the price bounces back above the 1.24000 zone, the rise is expected to head back to the 1.25000 highs.</p><p><br /></p><p>If the resistance is successfully passed, the latest high level will be recorded with a price target to reach 1.26000.</p>