This week most events will be ignored due to a simple reason. The US central bank, The Federal Reserve is scheduled to make a rate announcement on Wednesday at 18:00 GMT. The Fed is expected to keep interest rates unchanged at 5.50%.
Afterwards, note the 18:30 GMT press conference of the Chairman of the Federal Reserve Jerome Powel. His comments always cause major volatility and quite often reverse the initial market reaction to the publication of the USD base interest rate.
Moreover, on Thursday, the Bank of England is set to announce its base interest rate for the Pound. The publication is scheduled for 12:00 GMT. The follow up press conference is set for 12:30 GMT.
GBP/USD short-term view
A move above 1.2159 could be slowed down by the 1.2180 level that has acted as resistance on October 25. Higher above, note that the 1.2220 level has shown itself as resistance and support.In the case of a decline of the currency pair, the pair could look for support in the 200-hour simple moving average near 1.2150 and the combination of the 50 and 100-hour SMAs near 1.2125. Further below, the 1.2100 could once again act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pierced the upper trend line of the channel down pattern. However, the combination of the 1.2300/1.2450 range and the 50-day simple moving average was enough to keep the rate down.Daily chart
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Traders are mostly long
Since Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 65% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 60% to sell.
Since Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 65% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 60% to sell.