On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
GBP/USD short-term view
In the case of the pair moving above 1.2250, the 1.2300 and 1.2350 levels are highly likely to act as resistance, as they stopped the last week's surge.However, a decline of the Pound against the US Dollar might be slowed down by the 50 and 100-hour simple moving averages at 1.2180 and 1.2200, before reaching the weekly simple pivot point at 1.2162. In addition, the 200-hour simple moving average and the 1.2150 level could act as support. Further below, the 1.2100 and 1.2050 levels could serve as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has reached the summer high level zone at 1.2275/1.2330. As expected, it is acting as resistance.Above the summer high level zone, take into account the April and May resistance at 1.2610/1.2660.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, traders were bearish, as 63% 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 64% to sell the GBP/USD.
On Thursday, traders were 63% short and pending orders were 55% to sell.
On Wednesday, traders were bearish, as 63% 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 64% to sell the GBP/USD.
On Thursday, traders were 63% short and pending orders were 55% to sell.