On Friday, at 13:30 GMT the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
On Monday, the UK GDP data release at 07:00 GMT is most likely going to impact the value of the Pound.
On Tuesday, at 07:00 GMT the UK unemployment claimant count change might impact the value of the Pound.
Afterwards, the US Consumer Price Inflation data is set to be published on Tuesday at 13:30 GMT. The inflation is set to reveal whether the Federal Reserve is successful in its policy at reducing inflation.
On Wednesday morning, at 07:00 GMT, the UK Consumer Price Inflation is going to be published and is set to impact the Pound.
Later on, the top event of them all will take place. At 19:00 GMT, the US Federal Reserve will release its Federal Open Market Committee Statement and Economic Projections. The central bank is expected to hike its base interest rate from 4.00% up to 4.50%.
On Thursday, at 12:00 GMT, the Bank of England is going to announce its interest rate decision. The central bank is most likely going to take into account the decision of the Federal Reserve. Note that the BoE and the ECB have scheduled their rate decision meetings in the aftermath of the US rate announcement.
Later on, at 13:30 GMT, the US Retails Sales data and Empire State Manufacturing Index might cause an adjustment in the value of the US Dollar.
The week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data. United Kingdom data is set to be published at 09:30 GMT. The UK data is followed by US data at 14:45 GMT.
GBP/USD short-term view
If the 1.2250 level acts as support and causes a surge, the 1.2300 and 1.2350 levels are highly likely to act as resistance, as they stopped the last week's surge.However, a decline of the Pound against the US Dollar below 1.2250 might be slowed down by the 50 and 100-hour simple moving averages at 1.2180 and 1.2200, before reaching the weekly simple pivot point at 1.2162. In addition, the 200-hour simple moving average and the 1.2150 level could act as support. Further below, the 1.2100 and 1.2050 levels could serve as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has reached the summer high level zone at 1.2275/1.2330. As expected, it is acting as resistance.Above the summer high level zone, take into account the April and May resistance at 1.2610/1.2660.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, traders were bearish, as 63% 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 53% to sell the GBP/USD.
On Thursday, traders were 63% short and pending orders were 55% to sell.
On Friday, traders were bearish, as 63% 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 53% to sell the GBP/USD.
On Thursday, traders were 63% short and pending orders were 55% to sell.