This week, the GBP/USD rate is set to react to a number of events.
First of all note the Tuesday's speech of the Bank of England Governor Bailey at the Mansion House Financial and Professional Services Dinner.
On Wednesday, the UK Consumer Price Index is set to be published at 06:00 GMT. The UK Inflation Data is highly likely going to create GBP volatility.
On Friday, the pair might react to the publication of the UK monthly retail sales data at 06:00 GMT.
Afterwards, note the US Markit Services and Manufacturing Purchasing Managers Index release at 13:45 GMT. The rate might be impacted through the USD value reacting to the publication.
GBP/USD short-term view
If the Pound declines against the US Dollar, the rate might look for support in the combination of the 50 and 200-hour simple moving averages near 1.1910. Further below, note the 1.1900 level and the weekly simple pivot point at 1.1886.Meanwhile, a surge of the pair might encounter resistance in the 1.2030, prior to reaching the 1.2050 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair shows that it has reached a new 2022 low level. The pair has no additional technical support on this chart as low as the 1.1500 mark, where the lower trend line of a channel down pattern is located at.In the meantime, note that the recent recovery might encounter resistance in the upper trend line of the 2022 channel down pattern near 1.2100.
Daily chart
Read More: Technical Analysis
Traders are mostly long
On Monday, traders were long, 64% 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 59% to buy the GBP/USD.
On Tuesday, the open positions were 63% long and pending orders were 58% to buy.
On Monday, traders were long, 64% 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 59% to buy the GBP/USD.
On Tuesday, the open positions were 63% long and pending orders were 58% to buy.