On Monday, at 06:00 GMT, the GBP/USD pair is set to react to the publication of the monthly UK GDP data.
On Tuesday, the US Consumer Price Index and Core Price Index are set to impact the markets through the US Dollar's value adjusting to US rate hike expectations. Namely, too high inflation is set to strengthen the USD, as the markets would expect higher rate hikes.
At 12:30 GMT on Wednesday, the UK Consumer Price Index is set to reveal how inflation has changed in the United Kingdom.
Also on Wednesday, at 12:30 GMT, the US Producer Price Index and Core Producer Price Index data will also impact the US Dollar.
On Thursday, the top event for the Pound will occur. The Bank of England is set to do another rate hike at 11:00 GMT. Most likely, the central bank will take into account the previous day's CPI release.
Additional data will be published on Thursday, as the US Retail Sales and Core Retail Sales are set to be released at 12:30 GMT.
GBP/USD short-term view
A continuation of the recovery of the Pound against the US Dollar might encounter resistance in the weekly R1 simple pivot point at 1.1675. Higher above, the 1.1700 could slow down a surge, prior to the rate reaching the 1.1715/1.1760 zone.However, a decline of the currency exchange rate is expected to look for support in the 1.1600 mark, the weekly simple pivot point at 1.1585 and the 200-hour simple moving average near 1.1560. Further below, note the 1.1550 and 1.1500 levels together with the 50 and 100-hour SMAs near 1.1515.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the currency pair found support in the 2020 March low level at 1.1415.If the 1.1415 level gets passed, the pair will reach levels not seen for decades. Namely, the rate was below 1.1000 in early 1980s.
On the other hand, a recovery of the Pound against the US Dollar might encounter resistance in the 1.1760/1.1810 zone. Higher above, take into account the 50-day simple moving average near 1.1900.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Wednesday, open positions were 75% long and pending orders were 52% to buy.
On Thursday, traders were bullish, as 72% 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 51% to buy the GBP/USD.
By the middle of Friday's trading, the traders had continued to close long positions and open shorts, as 67% of volume was long and pending orders were 66% to buy.
On Wednesday, open positions were 75% long and pending orders were 52% to buy.
On Thursday, traders were bullish, as 72% 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 51% to buy the GBP/USD.
By the middle of Friday's trading, the traders had continued to close long positions and open shorts, as 67% of volume was long and pending orders were 66% to buy.