At 06:00 GMT the decline increased due to the publication of the UK Consumer Price Index. It was revealed that year-on-year basis inflation in September in the United Kingdom had reached 10.10%. The markets expected inflation to be at 10.00%. The GBP/USD reacted to the news with a 33 base point or 0.29% drop over a period of five minutes. Afterwards, the decline continued, as the pair almost reached the 1.1220 level. Economic Calendar
This week, there is only one notable scheduled event, which could impact the US Dollar and the financial markets. On Thursday, a minor move could occur due to the Philadelphia Federal Reserve Manufacturing Index release at 12:30 GMT.
GBP/USD short-term view
A continuation of the ongoing decline might look for support in the 1.1200 level, the 200-hour SMA near 1.1180 and the weekly simple pivot point at 1.1160, before reaching the 1.1150 level. The 1.1150 level acted as support on Friday.Meanwhile, a recovery of the Pound against the US Dollar is expected to face resistance in the 1.1300 mark, which should be strengthened by the 50 and 100-hour simple moving averages. Higher above, the 1.1350 mark could once again stop a surge.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, it was previously reported that the 50-day simple moving average near 1.1500 is highly likely going to impact the rate. It could act as additional resistance, as it reaches lower. The expectations have become reality, as since Monday the SMA acted as resistance near 1.1400.Daily chart
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Traders are short
On Tuesday, traders were bearish, as 60% 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 56% to sell the GBP/USD.
On Wednesday, the positions were 58% short and orders were 58% to sell.
On Tuesday, traders were bearish, as 60% 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 56% to sell the GBP/USD.
On Wednesday, the positions were 58% short and orders were 58% to sell.