GBP/USD Soars 240 Pips To New 9-Week High!

<p>&nbsp;The price chart of the GBP/USD currency pair showed a surge to its latest high yesterday with a daily gain of up to 240 pips!</p><p><br /></p><p>In yesterday's European session, price movements were still slow with the reaction of published UK employment data seen as having no impact.</p><p><br /></p><p>But the situation changed rapidly in the next session when the market focus was directed to the latest United States (US) inflation data.</p><p><br /></p><p>The annual inflation reading fell to 3.2% for October, lower than the forecast of 3.3%, and a slower return from the 3.7% recorded in September.</p><p><br /></p><p>This has had a significant depreciating effect on the US dollar as well as giving room for the Pound to rise.</p><p><br /></p><p>Investors will be alert for the movement of the Pound in the European session shortly with the focus being on UK inflation data to be published.</p><p><br /></p><p>While in the New York session, some US economic data will be observed including retail sales data and the producer price index (PPI).</p><p><br /></p><p>If you look at the GBP/USD chart yesterday, the price that initially hovered slowly in the 1.23000 zone has then surged to break through last week's resistance zone at 1.24000.</p><p><br /></p><p><br /></p><p>Next, the increase continued until it reached the latest peak at 1.25000 which is also one of the price focus levels.</p><p><br /></p><p>Reaching that height, the price has registered a new high for a 9-week trading period.</p><p><br /></p><p>The slow price movement around 1.25000 continued in the Asian session this morning, but investors will expect the move higher to continue with the momentum that was displayed yesterday.</p><p><br /></p><p>If it breaks through 1.25000, the increase is seen to lead to the height of 1.26000 or further to the 1.27000 zone which was the focus of trading last August.</p><p><br /></p><p>However, if there is a further decline, the price is likely to react at the 1.24000 zone to indicate further movement.</p><p><br /></p><p>If it breaks down, the decline could reach around 1.23000 again before a trend change signal will be observed.</p>