The GBP/USD currency pair has declined to the major support and resistance range at 1.2590/1.2610. The range has once again held and the pair has surged to the 1.2700 mark. Note that the rebound coincided with the UK revealing that it also has higher than forecast inflation, which indicated that the GBP interest rates are also set to remain high or even get increased. Economic Calendar
There are no more notable events scheduled for this week.
GBP/USD hourly chart analysis
A recovery of the pair would have to break above the 1.2700 mark and the 50, 100 and 200-hour simple moving averages. Higher above, note taht the weekly simple pivot point has managed to act as support and resistance at 1.2735. In the case of these levels failing to hold, the rate is set to reach for the weekly R1 simple pivot point and the 1.2800 mark.On the other hand, a sudden strengthening of the GBP/USD is set to face the weekly S2 at 1.2623 and the 1.2590/1.2610 range. The past shows that this range is highly unlikely going to fail.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, additional support appears to be provided by the 50-day simple moving average at 1.2640. In addition, note the 200-day SMA at 1.2560.Daily chart
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Traders are short
On Thursday, traders were 58% short, and pending orders in the 100 pip range around the rate were 60% to sell.