On Friday, the US Consumer Price Index release at 12:30 GMT is set to impact all financial markets through the value of the USD.
GBP/USD short-term review
If the Pound manages to reach above the 200-hour simple moving average and the 1.2580 mark, expect resistance to be found in the 1.2600 mark and the weekly R1 simple pivot point at 1.2611.On the other hand, a decline of the pair is set to immediately find support in the combination of the 50 and 100-hour simple moving averages near 1.2540 and the weekly simple pivot point at 1.2535. Further below, the 1.2460/1.2480 zone could once again act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed above the resistance line of the larger scale channel down pattern, which has guided the rate's decline since early February. Moreover, the pair confirmed the previous resistance as support.Next target for the surge was the 50-day simple moving average near 1.2650. Higher above, note the March and April support zone near 1.3000. Namely, the 1.3000 mark could act as resistance.
Daily chart
Read More: Technical Analysis
Traders are short
Since Friday, traders were 56% bearish, as 56% 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 68% to sell the GBP/USD. The orders changed on Monday, as 54% were to sell.
Since Friday, traders were 56% bearish, as 56% 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 68% to sell the GBP/USD. The orders changed on Monday, as 54% were to sell.