However, by mid-Monday, the pair had recovered and once again tested the 1.2590/1.2610 range, prior to resuming the broader decline. Economic Calendar
On Tuesday, the US Dollar is set to adjust to the monthly US Consumer Price Index release at 13:30 GMT. Inflation is expected to have been unchanged month on month and an annual decline from 3.2% down to 3.1% is expected. Meanwhile, the market consensus is that core inflation might have increased due to winter increasing demand for energy consumption.
On Wednesday, the top event of them all will take place. The US Federal Reserve will announce its Federal Funds Rate. The central bank is expected to keep the rate at 5.50%. Moreover, note the follow up press conference of the Chairman of the Federal Reserve Jerome Powell. The events are scheduled for 19:00 and 19:30 GMT.
After the US reveal their policy, the rest of the world decides how to react on Thursday. Namely, the Swiss National Bank at 08:30 GMT, the Bank of England at 12:00 GMT and the European Central Bank at 13:15 GMT are all set to make rate announcements. The CHF, GBP and EUR are set to act to the rate announcements.
However, in most cases these banks do not surprise the financial markets. Moreover, they are all expected to follow the example of the Fed and keep their rates unchanged.
Meanwhile, note that the ECB President and Vice President are set to host a press conference at 13:45 GMT. Sometimes Christine Lagarde makes comments that impact the Euro and European stock indices.
On Friday, the markets could move if one of the Markit Institute Flash Services and Manufacturing PMI survey results reveal a surprise. Starting from 08:15 GMT up to 14:45 GMT the institute will release data for Eurozone countries, the United Kingdom and the United States.
GBP/USD short-term view
A decline below the 1.2545/1.2550 range could result in the pair once again looking for support in the 1.2500 mark. Further below, note the 1.2450 level and the weekly S1 simple pivot point at 1.2456.In the meantime, a potential recovery of the Pound against the US Dollar is set to first face the 50 and 100-hour simple moving averages near 1.2565/1.2570. Higher above, take into account that the 1.2590/1.2610 is strengthened by the weekly simple pivot point at 1.2590 and the approaching 200-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, a new resistance range is marked at 1.2700/1.2720. This range appears to have held and caused the most recent decline.It was reported last week that the decline could aim for the 200-day simple moving average near 1.2525. The SMA has been reached and is acting as support since Friday.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, traders were 52% short, but pending orders in the 100 pip range around the pair were 54% to buy.
On Monday, traders were 52% short, but pending orders in the 100 pip range around the pair were 54% to buy.