Just like all USD pairs and assets the GBP/USD was highly volatile during the US Consumer Price Index release. The pair was bouncing around in the 1.3525/1.3645 range after the release. On Friday morning, the currency exchange rate found support in the weekly simple pivot point at 1.3517 and started a surge.
By the middle of the day's European trading hours, the GBP/USD was surging and heading to the 1.3600 mark.
Economic Calendar
On Tuesday, at 13:30 GMT, the US Producers Price Index data will reveal, how high is the inflation at the production level.
On Wednesday, at 07:00 GMT, the UK Consumer Price Index is set to reveal consumer inflation in the United Kingdom.
Possibly the top event of the week will take place on Wednesday at 19:00 GMT, as the US Federal Open Markets Committee Meeting Minutes will be published. The Meeting Minutes provide an insight to the decisions of the US Federal Reserve.
On Thursday, the US Unemployment Claims could cause an adjustment of the USD value.
The week will end on Friday with the UK Retail Sales data at 07:00 GMT
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the rate reaches the 1.3600 mark and passes above it, the 1.3615/1.3625 zone might act as resistance. However, take into account that the zone was passed during the CPI release's volatility. Above the zone, the weekly R1 simple pivot point at 1.3646 could stop a surge.On the other hand, a decline of the Pound against the US Dollar are slightly likely going to find support in the combination of the 50, 100 and 200-hour simple moving averages near the 1.3550 mark. Further below, the weekly simple pivot point at 1.3517 might once again stop a decline.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate is trading above the support of the 100-day simple moving average. It appears that after a period of being ignored, the SMA manages to impact the rate.Next target for the pair is the 200-day simple moving average near 1.3700, which reversed the rate's surge in mid-January.
Daily chart
Read More: Technical Analysis
Traders are short
On Friday, traders were mostly bearish, as 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to buy the GBP against USD.
On Friday, traders were mostly bearish, as 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to buy the GBP against USD.