Watch out for the US inflation data. On Wednesday, the US Producer Price Index is set to be published at 12:30 GMT.
Also on Wednesday, the US Federal Reserve will publish the FOMC Meeting Minutes. The minutes could reveal more information about the US monetary policy. The publication is scheduled for 18:00 GMT.
On Thursday morning, the UK GDP is set to be published at 06:00 GMT. The GBP pairs are highly likely going to react to the news.
On Thursday, at 12:30 GMT, the US Dollar will react to the combination of the US Consumer Price Index and the weekly Unemployment Claims data. Markets will be looking at this release as the top one of the week.
GBP/USD short-term view
A breaking of the 1.2260/1.2285 range is expected to result in a surge of the Pound against the US Dollar. The potential surge would face resistance at the 1.2300 mark and the weekly R1 simple pivot point. Higher above, take into account the 1.2350 mark and the combination of the 1.2400 level and the weekly R2 simple pivot point.On the other hand, a decline below the 50-hour simple moving average near 1.2220 might result in the rate looking for support in the 1.2200 level. Further below, the combination of the 100 and 200-hour simple moving averages and the weekly simple pivot point could act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pair continues to decline in the borders of the channel down pattern. The lower trend line of the pattern is slowing down the ongoing descent and causing retracements back up.Daily chart
Read More: Technical Analysis
Traders are long
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 63% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 53% to sell.
By mid-Tuesday, the positions were 62% long and pending orders were still 53% to sell.
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 63% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 53% to sell.
By mid-Tuesday, the positions were 62% long and pending orders were still 53% to sell.