Break Through $1.2700 Level, GBP/USD Falls 100 Pips!

<p>&nbsp;The price chart of the GBP/USD currency pair clearly displayed a bearish movement on Tuesday's trading yesterday with a daily decline of around 100 pips recorded.</p><p><br /></p><p>The UK employment data report in yesterday's European session was mixed and failed to support the strengthening of the Pound.</p><p><br /></p><p>On the other hand, the US dollar managed to show strengthening yesterday following the signal of the postponement of interest rate cuts by the Federal Reserve (Fed) through a speech delivered by Fed governor Christopher Waller.</p><p><br /></p><p>In addition, the geopolitical tension factor in the Middle East also influenced the strengthening of the US dollar as a safe-haven currency this week.</p><p><br /></p><p>Today's focus will be on the UK inflation data in the European session shortly and in the New York session, the US retail sales data will steal the attention of investors.</p><p><br /></p><p>On the GBP/USD chart, the price opened around the 1.09500 level in the Asian session yesterday and then continued to make a continuous decline in the following sessions.</p><p><br /></p><p>When observed, the price drop has managed to pass the 1.27000 level which has been a support for the price throughout the last week and is thick from being broken.</p><p><br /></p><p>After the level was seen to fail to withstand downward pressure, a bearish pattern was displayed until the price headed towards the target zone of 1.26000.</p><p><br /></p><p><br /></p><p>Prices remained hovering slowly above the zone when trading continued in the Asian session this morning with the expectation that the decline will continue.</p><p><br /></p><p>If the 1.26000 zone is broken, the price target will shift to 1.25000 after the last time the price tested it previously on December 13th.</p><p><br /></p><p>However, price increases can occur if the latest published economic data influences the price direction.</p><p><br /></p><p>If the price increase happens, the 1.27000 level is seen to function as a price resistance.</p><p><br /></p><p>If it passes then it will give a bullish signal for the price to display a higher increase up to the target of the 1.28000 resistance zone.</p>