Wednesday is set to be the top day for GBP/USD traders. In the morning, at 06:00 GMT, the UK Consumer Price impact is set to reveal whether the United Kingdom has reached 10.00% annual inflation.
At 12:30 GMT the US Retail Sales and Core Retail Sales data is set to impact the rate through the value of the US Dollar.
Namely, a decreasing or flat retail sales change month on month is set to cause an adjustment of the USD to the downside. Meanwhile, a higher than expected reading could be the catalyst of a surge of the Dollar.
At 18:00 GMT on Wednesday, the US Federal Reserve Meeting Minutes are bound to be published. The details included in the document might be the reason for a USD move.
GBP/USD short-term view
A broad recovery of the Pound against the US Dollar might encounter resistance in the 50-hour simple moving average near 1.2085, the 1.2100 mark, the 200-hour simple moving average near 1.2120. Higher above, note the 1.2150 level, which is strengthened by the 100-hour SMA and the weekly simple pivot point at 1.2152.However, a decline of the currency exchange rate might look for support in the 1.2000 mark, prior to approaching the 1.1950 level and the weekly S2 simple pivot point at 1.1922.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate appears to be trading between two zones since mid-June. The pair is respecting resistance of the 1.2270/1.2330 zone. The resistance zone was recently reached by the 100-day simple moving average.Meanwhile, support was found in July in the 1.1760/1.1805 zone, which marks the 2022 low levels.
In the meantime, note that the 1.2000 mark has acted both as resistance and support since the middle of June.
Daily chart
Read More: Technical Analysis
Traders are long on GBP/USD
On Monday, traders were bullish, as 62% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to buy the GBP/USD.
At mid-day on Tuesday, traders were still 62% long. However, pending orders were 55% to sell.
On Monday, traders were bullish, as 62% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to buy the GBP/USD.
At mid-day on Tuesday, traders were still 62% long. However, pending orders were 55% to sell.