Watch out for the US Consumer Price Index at 12:30 GMT, on Thursday. The inflation data will reveal whether the Fed is managing to fight inflation or not.
On August 11, the markets will look at the UK GDP for signs of recession at 06:00 GMT and the US Producer Price Index at 12:30 GMT to analyse potential consumer price increases in the future.
GBP/USD short-term view
A move below 1.2700 and 1.2685/1.2695 might result in the rate looking for support in the 1.2650 level. This level acted as support on Thursday. Further below, note the weekly S1 at 1.2618 and the 1.2600 mark.However, in the case of a Pound's recovery against the US Dollar, expect resistance to be found in the combination of the 1.2800 mark, the 1.2783/1.2793 range and the 200-hour simple moving average, before higher levels are reached.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the 1.2800 mark and the 50-day simple moving average. Most recently, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving average.A passing below these support levels could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders become neutral
On Wednesday, open GBP/USD positions by Swiss Foreign Exchange traders were 52% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 55% to buy.
On Tuesday, positions were 55% long and orders were 52% to sell.
On Wednesday, open GBP/USD positions by Swiss Foreign Exchange traders were 52% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 55% to buy.
On Tuesday, positions were 55% long and orders were 52% to sell.