The top event of the week was the US Consumer Price Index release, which hit market forecasts on Tuesday at 12:30 GMT. However, there are more events that are expected to impact the currency pair.
On Wednesday, at 12:30 GMT, the US Retail Sales and Producer Price Index data sets are expected to impact the financial markets through and adjustment of the value of the US Dollar.
GBP/USD short-term view
A move above the 1.2200 mark might find resistance in various levels. First level is the 1.2250 mark. Secondly, note the February high level at 1.2270. Above these levels, the weekly R2 simple pivot point could slow down the rate, before the 1.2300 mark is reached.However, a decline of the Pound versus the USD is expected to look for support in the 50-hour simple moving average near 1.2125, prior to reaching the 1.2100 and 1.2050 levels. These levels have acted as support and resistance during the early trading of this week.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has found support in the zone which surrounds the 1.1800 mark. Most recently, the recovery of the currency pair appears to have pierced through the resistance of the 50 and 100-day simple moving averages.A move above the 1.2200 mark is set to face the resistance zone of the 2022 and 2023 high level zone at 1.2300/1.2450.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Tuesday, traders were 58% bearish, as 58% 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.
On Tuesday, traders were 58% bearish, as 58% 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.