The decline was attributed to a consolidation prior to the US Federal Reserve Rate hike scheduled for Wednesday. Economic Calendar
The currency might react to the release of the UK Consumer Price Index on Wednesday at 07:00 GMT.
Also on Wednesday, the financial markets are set to adjust to the announcement of the US Federal Funds Rate at 18:00 GMT.
On Thursday, the Bank of England is scheduled to announce its Official Bank Rate at 12:00 GMT.
GBP/USD short-term view
In the case the rate extends its decline, support might be found in the 50-hour simple moving average and the 1.2200 mark. Below the round exchange rate level note the 1.2150 level and the 100-hour simple moving average.If the Federal Reserve causes a decline of the US Dollar, the GBP/USD might move higher. A move higher could be slowed down by the 1.2300 and 1.2400 levels, which have acted as support and resistance during early February.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has found support in the zone which surrounds the 1.1800 mark. Most recently, the recovery of the currency pair appears to have pierced through the resistance of the 50 and 100-day simple moving averages.A move above the 1.2200 mark is set to face the resistance zone of the 2022 and 2023 high level zone at 1.2300/1.2450.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
Before the fundamental events, traders were 62% bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 57% to buy the GBP/USD.
Before the fundamental events, traders were 62% bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 57% to buy the GBP/USD.