This week, the US Consumer Price Index data release on Wednesday at 12:30 GMT is set to impact the financial markets.
On Thursday morning, GBP traders will all watch the Bank of England Official Bank Rate hike at 11:00 GMT. In addition, the head of the Bank of England Governor Bailey is set to host a press conference at 11:30 GMT.
Later on, watch out for the US Producer Price Index publication at 12:30 GMT. In addition, at the same time the US weekly Unemployment Claims numbers will be out.
On Friday, the UK GDP data is set to reveal whether the UK economy has decreased or increased in size. However, the market forecasters expect the UK to have stagnated at 0.00%.
GBP/USD short-term view
By mid-Tuesday the pair had declined to the 1.2600 mark and the 100-hour simple moving average. A move below this level could look for support in the weekly simple pivot point at 1.2571 and the 200-hour simple moving average near 1.2550.On the other hand, another attempt to surge by the GBP against the US Dollar is set to face the 1.2650/1.2670 range, before approaching 1.2700 mark and the weekly R1 simple pivot point.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has passed the resistance zone of the 2023 high levels at 1.2300/1.2450.Most recently, the late 2022 high level zone could stop the pair near 1.2600. Above the zone, the 1.3000 will act as resistance.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
Before the CPI, traders were 71% bearish, as 71% 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 50%/50% to buy and sell the GBP/USD.
Before the CPI, traders were 71% bearish, as 71% 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 50%/50% to buy and sell the GBP/USD.