These events resulted in a broad decline of the GBP against the US Dollar throughout the week. On Friday, the rate was heading to the support of the weekly S2 simple pivot point near 1.2475. Economic Calendar
Next week, notable data releases start already on Monday. At 12:30 GMT, the US Retail Sales data will be published. Higher than expected retail sales indicate at potential increase in inflation. Retailers could increase prices and cause inflation while consumer demand is strong.
On Wednesday, the UK Consumer Price Index is expected to impact the value of the Pound. A sudden surge of consumer prices in the UK could force the Bank of England to hike interest rates and strengthen the Pound. The Bank of England does its own policy and has reacted to world events better than the US Federal Reserve.
On Thursday, a minor move could occur due to the weekly Unemployment Claims release at 12:30 GMT. More employed people indicate at more consumer demand that also pushes prices higher.
GBP/USD hourly chart analysis
A move below the weekly S2 simple pivot point could aim at the weekly S3 simple pivot point at 1.2412 and the 1.2400.On the other hand, a recovery of the Pound could result in the rate testing the 1.2520 and 1.2540 levels. Higher above, note the combination of the 1.2560 level, the weekly S1 simple pivot point at 1.2556 and the descending 50-hour simple moving average. Higher above, note the 1.2600 mark 100 and 200-hour simple moving averages at 1.2610 and the weekly simple pivot point at 1.2620.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the GBP/USD is below the 200-day simple moving average and the 1.2500/1.2535 range's support. Next target is the 1.2380/1.2430 zone that acted as resistance and support in late 2023. Further below, note the late 2023 low level range just below the 1.2100 mark.Daily chart
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Traders remain long
On Monday, traders were 54% bullish, as that proportion of all open position volume on Swiss Foreign Exchange was in long positions.
Meanwhile, pending orders in the 100-pip range around the rate were 59% to buy.
After the US inflation week, 62% of traders were long and orders were 52% short.
Meanwhile, pending orders in the 100-pip range around the rate were 59% to buy.
After the US inflation week, 62% of traders were long and orders were 52% short.
In general, more traders expect the pair to recover. In addition, to the one's sitting on losses since Monday.