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
A surge of the Pound against the US Dollar might encounter resistance in the 1.2250 level and the 50-hour simple moving average. Higher above, take into account the 1.2300 and 1.2350 levels, which have acted as resistance.However, a potential decline of the Pound against the US Dollar would look for support in the weekly simple pivot point at 1.2162 and the 1.2150 level. Further below, the 200-hour simple moving average might slow down a decline, before the pair reaches the 1.2100 and 1.2050 levels.
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
Short sentiment decreases
On Monday, traders were bearish, as 64% 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 57% to buy the GBP/USD.
On Tuesday, traders were 61% short and pending orders were 64% to sell.
On Monday, traders were bearish, as 64% 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 57% to buy the GBP/USD.
On Tuesday, traders were 61% short and pending orders were 64% to sell.