During the week, most attention will be put on the US Consumer Price Index and Producer Price Index data. The data sets are expected to reveal the inflation in the United States in the aftermath of the first Federal Reserve Rate hike done in March. Consumer Price Index and Core Consumer Price Index number will be published on Wednesday at 12:30 GMT.
On Thursday morning, Pound traders should take into account the publication of the UK Preliminary quarter-on-quarter Gross Domestic Product data publication at 06:00 GMT.
Later on, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.
To see historical move tables click on the link below.
GBP/USD short-term review
If the rate declines below the 1.2300 mark, the pair could find support in the early morning low level at 1.2261. Further below, support is highly likely going to be provided by the 1.2250 mark and the weekly S1 simple pivot point at 1.2197 together with the 1.2200 level.Meanwhile, a recovery of the Pound against the US Dollar would have to pass the 1.2400 mark, before approaching the April low levels at 1.2413/1.2423, the weekly simple pivot point at 1.2417 and the 100-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate appears to have found support in the 2020 July low level at 1.2260, which must be the cause for the Monday's recovery.Daily chart
Read More: Technical Analysis
Traders are mostly long
On Monday traders were 70% bullish, as 70% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 61% to sell the GBP/USD.
On Monday traders were 70% bullish, as 70% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 61% to sell the GBP/USD.