Next week, the currency might react to the release of the UK Consumer Price Index on Wednesday at 07:00 GMT.
Also on Wednesday, the financial markets are set to adjust to the announcement of the US Federal Funds Rate at 18:00 GMT.
On Thursday, the Bank of England is scheduled to announce its Official Bank Rate at 12:00 GMT.
GBP/USD short-term view
A move higher by the pair might encounter resistance in the early February high level at 1.2200. Higher above, note the 1.2250 level and the February high level at 1.2270.Meanwhile, a decline of the Pound against the US Dollar could look for support in the 50 and 100-hour simple moving averages and the 1.2100 mark. Further below, take into account the 1.2050 level and the 200-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has found support in the zone which surrounds the 1.1800 mark. Most recently, the recovery of the currency pair appears to have pierced through the resistance of the 50 and 100-day simple moving averages.A move above the 1.2200 mark is set to face the resistance zone of the 2022 and 2023 high level zone at 1.2300/1.2450.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Friday, traders were 55% bearish, as 55% 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 62% to sell the GBP/USD.
On Friday, traders were 55% bearish, as 55% 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 62% to sell the GBP/USD.