On Thursday, the US Advance GDP data is set to reveal whether the United States are or are not experiencing a decline in the Gross Domestic Product at 13:30 GMT. The Advance GDP is the first data set that reveals how the economy has done in the last quarter.
The week will end with the publication of the US Core PCE Price Index. This index is the one being used by the US Federal Reserve to measure the impact of inflation on the consumers. It is seen by some as more important than the CPI. The release is scheduled for 13:30 GMT.
GBP/USD short-term view
An extension of the ongoing decline might find support in the 1.2250 level and the weekly S1 simple pivot point at 1.2230. Afterwards, the 1.2200 level could act a support.On the other hand, a recovery of the Pound against the USD would face resistance in the weekly simple pivot point at 1.2333 and the combination of the 50 and 100-hour simple moving averages near 1.2370.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair trades between a resistance zone at 1.2305/1.2455 and support zone at 1.1740/1.1840. Most recently, the surge began to once again test the resistance zone.Daily chart
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Traders are shorting
After the US PPI and Retail Sales release, traders were 55% bearish, as 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 50% to buy and sell the GBP/USD.
This week, the open positions were 62% short and pending orders were 51% to buy.
After the US PPI and Retail Sales release, traders were 55% bearish, as 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 50% to buy and sell the GBP/USD.
This week, the open positions were 62% short and pending orders were 51% to buy.