This week most events will be ignored due to a simple reason. The US central bank, The Federal Reserve is scheduled to make a rate announcement on Wednesday at 18:00 GMT. The Fed is expected to keep interest rates unchanged at 5.50%.
Afterwards, note the 18:30 GMT press conference of the Chairman of the Federal Reserve Jerome Powel. His comments always cause major volatility and quite often reverse the initial market reaction to the publication of the USD base interest rate.
Moreover, on Thursday, the Bank of England is set to announce its base interest rate for the Pound. The publication is scheduled for 12:00 GMT. The follow up press conference is set for 12:30 GMT.
GBP/USD short-term view
Higher above, note that the 1.2220 level has shown itself as resistance and support. Above 1.2200, the weekly R1 could provide resistance at 1.2248.In the case of a decline of the currency pair, the GBP/USD is expected to look for support in the combination of the weekly simple pivot point and the 50, 100 and 200-hour simple moving averages in the range from 1.2125 up to 1.2150. Below the range, the 1.2100 is highly likely going to act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pierced the upper trend line of the channel down pattern. However, the combination of the 1.2300/1.2450 range and the 50-day simple moving average was enough to keep the rate down.Meanwhile, support is found in the 1.2035/1.2085 zone.
Daily chart
Read More: Technical Analysis
Traders are mostly long
Since Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 65% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 56% to sell.
Since Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 65% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 56% to sell.