GBP/USD Fails to Climb, Price Plunges Back From $1.2200 Level

<p>&nbsp;UK inflation data published in the European session overnight was seen as failing to support the strengthening of the Pound currency.</p><p><br /></p><p>Inflation levels in September remained at 6.7%, missing forecasts to fall to 6.6%.</p><p><br /></p><p>The pound showed an increase at the start of the published data, but failed to continue and traded weak again again in the following session.</p><p><br /></p><p>Price movements on the GBP/USD currency pair chart show that the 1.22000 level remains a strong obstacle for the price which has still failed to be penetrated.</p><p><br /></p><p>Prices tested this level in the European session last night, but retreated again before the strengthening of the US dollar in the following session pushed prices lower.</p><p><br /></p><p>It is a signal of a change in the bearish price trend if the price starts to move below the Moving Average 50 (MA50) resistance on the 1 hour time frame on the chart and decreases to around 1.21400.</p><p><br /></p><p>A slow decline pattern was exhibited in the Asian session this morning (Thursday), with the expectation that the 1.21000 zone would be the target to be tested.</p><p><br /></p><p><br /></p><p>If this zone is successfully penetrated, the price will slide lower towards the support zone in early October, namely around 1.20500.</p><p><br /></p><p>On the other hand, if the price shows an initial increase, after clearing the MA50 barrier it will retest the 1.22000 resistance zone.</p><p><br /></p><p>After this strong obstacle is finally successfully broken through, then the price will continue to rise higher with the hope of reaching around 1.23000.</p><p><br /></p><p>This is the resistance zone that was the focus of last week, and the analyst expects there will be an interesting price reaction in this zone.</p>