GBP/USD recovers losses

Source: Dukascopy Bank SA
The GBP/USD has found support in the 1.2350 level. The event has been followed up with a surge to the 1.2450 mark.

Economic Calendar



On Wednesday, watch out for the US Consumer Price Index release at 12:30 GMT. The US inflation data is bound to impact the US Dollar's value.

On the same day, at 18:00 GMT, the US Federal Reserve Meeting Minutes could cause a market reaction with new information on US monetary policy.

On Thursday, at 12:30 GMT, US inflation at the producer level will be revealed. The US Producer Price Index is set to be released at that time.

On Friday, the US Retail Sales data might cause a reaction in the financial markets at 12:30 GMT.

GBP/USD short-term view

In the case of the rate moving above 1.2450, the currency pair would most likely face resistance in the 1.2500 level. Higher above, the April high zone is bound to act as resistance at 1.2510/1.2525.

However, a decline of the Pound against the US Dollar might look for support in the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.2400/1.2430. Afterwards, the 1.2350 might once again act as support.

Hourly Chart

GBP/USD daily chart's review

On the daily candle chart, the pair has passed the resistance zone of the 2023 high levels at 1.2300/1.2450. Higher above, the late 2022 high level zone could stop the pair at 1.2600.
Daily chart


Traders are short on GBP/USD


On Tuesday, traders were 64% bearish, as 64% 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 51% to buy the GBP/USD.

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