During the events the GBP/USD pair's channel down pattern initially held. However, it was broken after the US employment release. On Monday, a decline of the rate was taking place and the technical indicators had resumed to provide resistance and support. Economic Calendar
Watch out for the US inflation data. On Wednesday, the US Producer Price Index is set to be published at 12:30 GMT.
Also on Wednesday, the US Federal Reserve will publish the FOMC Meeting Minutes. The minutes could reveal more information about the US monetary policy. The publication is scheduled for 18:00 GMT.
On Thursday morning, the UK GDP is set to be published at 06:00 GMT. The GBP pairs are highly likely going to react to the news.
On Thursday, at 12:30 GMT, the US Dollar will react to the combination of the US Consumer Price Index and the weekly Unemployment Claims data. Markets will be looking at this release as the top one of the week.
GBP/USD short-term view
A resumption of the GBP recovery against the US Dollar could face resistance in the 1.2220 and 1.2260 levels. These levels have acted as resistance on Friday and Monday. Higher above, note the 1.2300 mark and the weekly R1 simple pivot point at 1.2317.However, in the case of a decline of the GBP/USD currency exchange rate, the 50, 100 and 200-hour simple moving averages together with the weekly simple pivot point are all set to act as support in the 1.2150/1.2200 range. Below this range, note the 1.2120 level, which has acted as support throughout the prior week.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pair continues to decline in the borders of the channel down pattern. The lower trend line of the pattern is slowing down the ongoing descent and causing retracements back up.Daily chart
Read More: Technical Analysis
Traders are long
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 63% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 53% to sell.
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 63% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 53% to sell.