This week, the markets will concentrate first on the US CB Consumer Confidence release on Tuesday at 14:00 GMT. A surprise in the consumer sentiment reading could move the US Dollar.
On Thursday, at 12:30 GMT the publication of the United States Preliminary GDP and Unemployment Claims could impact the market via a move of the USD.
On Friday, the top event of the week will take place, as at 12:30 GMT the US Core Personal Consumption Expenditure Index monthly change will be published. If the data shows that inflation is not decreasing, the US Dollar is bound to surge. Higher than expected inflation is set to pressure the US Federal Reserve to hike the Dollar's base interest rate.
GBP/USD hourly chart analysis
Before reaching the 1.2800 mark, the rate has to reach above the weekly R1 simple pivot point at 1.2773. If the rate reaches above 1.2800, the weekly R2 might act as resistance at 1.2810. Higher above, note the ascending trend line of the broad channel up pattern, the 1.2850 level and the weekly R3 at 1.2859.On the other hand, a decline of the pair is expected to find support in the 1.2750 level and the combination of the 50 and 100-hour simple moving averages together with the weekly simple pivot point at 1.2725. If these levels fail, the 1.2700 mark and the 200-hour simple moving average are highly likely going to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
The price remains in the channel up pattern. Meanwhile, it is spotted that the daily moving averages are turning to the upside and could provide support to the ongoing surge.Daily chart
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Traders are shorting
On Monday, traders were 75% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 62% to sell.
At the start of last week, traders were 66% short. It appears that as the rate moves higher, more traders close long positions and open short positions. In addition, there are orders to open more short positions.
Meanwhile, pending orders in the 100-pip range around the rate were 62% to sell.
At the start of last week, traders were 66% short. It appears that as the rate moves higher, more traders close long positions and open short positions. In addition, there are orders to open more short positions.