This week, the US Consumer Price Index release is set to dictate the short term direction of all financial markets. The data will be published on Thursday at 13:30 GMT.
In addition, GBP traders are set to look out for the Friday's 07:00 publication of the United Kingdom's GDP data.
GBP/USD short-term view
A move below the support zone and the 1.2100 level might look for support in the combination of the 100 and 200-hour simple moving averages near 1.2050. Further below, note the 1.2000/1.2025 range and the weekly simple pivot point at 1.2018.However, a potential recovery of Pound against the US Dollar could encounter resistance in the weekly R1 simple pivot point at 1.2195 and the 1.2200 level. Higher above, note the 1.2250 and 1.2300 levels and the weekly R2 simple pivot point at 1.2303.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has pierced the support of the 50-day simple moving average. Meanwhile, the support of the 200-day SMA has been holding. Further below, note the support and resistance zone near the 1.1800 mark.Daily chart
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Traders are neutral
On Tuesday, traders were 51% bullish, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 68% to buy the GBP/USD.
On Tuesday, traders were 51% bullish, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 68% to buy the GBP/USD.