GBP/USD Analysis – There Is Important Price Reaction At $1.2700!

<p>&nbsp;The price chart of the GBP/USD currency pair saw yesterday's price movement hovering at the focus level as different patterns were displayed in the European and New York sessions.</p><p><br /></p><p>There are no factors seen to affect the Pound currency at the moment where the price movement is driven more by the US dollar following several factors that are of concern to the market.</p><p><br /></p><p>The strengthening of the US dollar was initially supported by Federal Reserve (Fed) Governor Michele Bowman's hawkish statement on monetary policy in addition to market risk sentiment due to declining Chinese economic data.</p><p><br /></p><p>However, the US dollar was again trading weak in the New York session when Philadelphia Fed President Patrick Harker appeared with his dovish view that policy tightening by the central bank is unlikely to continue.</p><p><br /></p><p>In fact, he who sees the central bank is about to implement interest rate cuts next year will make the strengthening of the US dollar stagnate again.</p><p><br /></p><p>Next, the United States (US) inflation data on Thursday and the UK economic growth (GDP) data on Friday will be the focus for investors to see the impact on price movements on the GBP/USD chart.</p><p><br /></p><p><br /></p><p><br /></p><p>A drop of around 100 pips yesterday has retested the 1.27000 concentration level as expected and there is an interesting reaction in the zone.</p><p><br /></p><p><br /></p><p>The price bounced back up before being blocked by the Moving Average 50 (MA50) level on the 1-hour time frame on the chart before closing the New York session around 1.27500.</p><p><br /></p><p>The horizontal price movement around that continued the opening of the Asian session this morning (Wednesday), but tried to show a rise to break the MA50 barrier.</p><p><br /></p><p>If the rise continues, the resistance level at 1.27900 is seen as a critical level to test before the price gives an indication of a more bullish move.</p><p><br /></p><p>The increase will continue to reach the target towards the resistance zone at 1.29000 before.</p><p><br /></p><p>However, if on the contrary a price drop occurs, once again the support level of 1.27000 is seen to be tested by the price.</p><p><br /></p><p>If it breaks through, the price will return to the 1.26000 support zone after last week's decline failed to cross the zone which pushed the price back up.</p>