Inflation in the United Kingdom is even lower than expected. Monthly inflation measured year-on-year is just 1.7% instead of the expected 1.9%. Moreover, it is a decline from 2.2% in the prior month.
Economic Calendar
On Thursday, watch the US release of the monthly Retail Sales data and the weekly Unemployment Claims at 12:30 GMT.
On Friday, the UK Retail Sales data will be out at 06:00 GMT.
GBP/USD hourly chart analysis
In regard to the future, a decline is finding support in the 1.3000 mark and the weekly S1 simple pivot point at 1.3014. Further below, note that the 1.2980 level appears to have acted as support. Further below, note the 1.2960 level and the weekly S2 simple pivot point.On the other hand, a recovery of the Pound against the US Dollar is set to face the combination of the 50 and 100-hour simple moving averages near 1.3050. Higher above, note the combination of the weekly simple pivot point at 1.3074 and the 200-hour simple moving averages. If these levels fail, note the 1.3100/1.3115 zone.
Hourly Chart
GBP/USD daily candle chart analysis
As described previously, the pair has declined further to look for support in the 100-day simple moving average and the range that surrounds the 1.3000 mark.A move below these levels could result in the pair looking for support in the 1.2900 mark, before approaching the 1.2800 level and the 200-day simple moving average.
On the other hand, a recovery of the rate could face resistance at 1.3100 and the 50-day SMA.
Read More: Technical Analysis
Traders add to short positions
On Monday, Dukascopy trader open position volume showed that 58% of trader open positions were short.
Meanwhile, pending orders 100-points around the rate were 53% to buy.
On Wednesday, traders were 61% short, but pending orders were 59% to buy.
Meanwhile, pending orders 100-points around the rate were 53% to buy.
On Wednesday, traders were 61% short, but pending orders were 59% to buy.