During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at 12:30 GMT.
On Thursday morning, Pound traders should take into account the publication of the UK Preliminary quarter-on-quarter Gross Domestic Product data publication at 06:00 GMT.
Later on, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
GBP/USD short-term review
A move below the 1.2277 level could result in the pair looking for support in the 1.2250 and 1.2200 levels.On the other hand, a potential recovery would have to pass the 1.2800 level, before approaching the resistance zone at 1.2413/1.2423. The zone stopped the rate's attempt to recover in the two hours following the Bank of England caused drop of the Pound.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate is approaching the 2020 July low level of 1.2260. In addition take into account the 2020 May low level at 1.2075.Daily chart
Read More: Technical Analysis
Traders are mostly long
On Friday traders were 70% bullish, as 70% 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 60% to sell the GBP/USD.
On Thursday, traders were 69% long and pending orders were 61% to sell.
On Friday traders were 70% bullish, as 70% 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 60% to sell the GBP/USD.
On Thursday, traders were 69% long and pending orders were 61% to sell.