However, the release of the US PPI on March 14 created a fundamental adjustment by boosting the value of the US Dollar. The GBP/USD declined below all the mentioned levels Economic Calendar
Next week, all of the financial markets will be watching the US Federal Reserve Federal Funds Rate publication on Wednesday at 20:00 GMT. Note the time difference in the release, compared to the usual. The US has already switched to summer daylights savings time.
After the US releases its base rate, the Bank of England is set to do the same on Thursday at 12:00 GMT. In general, in most cases the BoE just follows the example of the Federal Reserve. However, sometimes surprises in how the monetary policy committee has voted create GBP moves.
Also on Thursday, the US Services and Manufacturing sector Purchasing Managers Indices might impact the financial markets. However, recent releases of the data had minor impact.
GBP/USD hourly chart analysis
In the near term future, the GBP/USD could look for support in the 1.2700 mark and the weekly S1 simple pivot point at 1.2703. Below these levels, the 1.2650 could turn into a support level.On the other hand, a recovery of the Pound against the US Dollar is set to face the resistance of the 1.2750 level, the 1.2760/1.2775 range and the 200-hour simple moving average. Higher above, note the spread out technical levels in the 1.2790/1.2820 range. In that range, the 50 and 100-hour simple moving averages, the weekly simple pivot point and the August high level might impact the rate.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the 50-day simple moving average has been broken. It no longer acts as resistance. Meanwhile, note that the 50 and 100-day simple moving averages could act as additional support.Last week, the rate had reached above the late 2023 and early 2024 high level zone at 1.2800/1.2850. This range acted as support and resistance during the middle of 2023.
Daily chart
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Traders are neutral
After the PPI release, traders were 51% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 66% to buy.
Meanwhile, pending orders in the 100-pip range around the rate were 66% to buy.