Next week, the EUR/USD could react to the publication of the German and Spanish Consumer Price Indices on Wednesday morning.
On Wednesday, at 13:30 GMT, the US Preliminary quarterly GDP is expected to impact the financial markets through the value of the US Dollar.
On Thursday, the publication of the US Core PCE Price Index at 13:30 GMT is most likely going to cause a USD move, as the US monetary policymakers watch this indicator.
GBP/USD short-term view
In the case of the Pound surging against the US Dollar above the weekly R1 at 1.2575, the rate could be slowed down by 1.2600 and 1.2650, before the pair reaches the combination of the 1.2700 mark and the weekly R2 at 1.2696.On the other hand, a decline of the currency exchange rate could look for support in the 50 and 100-hour simple moving averages near 1.2520. Further below note the 1.2505/1.2510 range that has acted as support and resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD has broken the resistance of the 200-day simple moving average. There is no technical resistance on the daily candle chart, except the prior high and low levels of August and September that could impact the rate.Meanwhile, it was observed on Wednesday that as the rate ignored the moving average, it had started to respect the 1.2300/1.2450 range as support.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 54% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 51% to sell.
At mid-Tuesday, open positions were 61% short. However, orders were 60% to buy.
On Wednesday, positions were already 66% short and orders were 68% to buy. It appeared that traders were continuing to open short positions in the expectations of a decline, but had their stop loss buy orders close by.
On Thursday, traders were only 55% short and orders were 53% to sell. The previous short sellers must have taken profit, as the rate dropped down to 1.2450. The total move from mid-Wednesday to the low level was from 60 to 80 points or 0.50%-0.65%.
By mid-Friday, open positons were 57% short and orders were 60% to buy. The rest of the short sellers are still in their positions, but it appears that their stop losses are close by.
Meanwhile, trader pending orders in the 100 pip range around the rate were 51% to sell.
At mid-Tuesday, open positions were 61% short. However, orders were 60% to buy.
On Wednesday, positions were already 66% short and orders were 68% to buy. It appeared that traders were continuing to open short positions in the expectations of a decline, but had their stop loss buy orders close by.
On Thursday, traders were only 55% short and orders were 53% to sell. The previous short sellers must have taken profit, as the rate dropped down to 1.2450. The total move from mid-Wednesday to the low level was from 60 to 80 points or 0.50%-0.65%.
By mid-Friday, open positons were 57% short and orders were 60% to buy. The rest of the short sellers are still in their positions, but it appears that their stop losses are close by.