The US Consumer Price Inflation data is set to be published on Tuesday at 13:30 GMT. The inflation is set to reveal whether the Federal Reserve is successful in its policy at reducing inflation.
On Wednesday morning, at 07:00 GMT, the UK Consumer Price Inflation is going to be published and is set to impact the Pound.
Later on, the top event of them all will take place. At 19:00 GMT, the US Federal Reserve will release its Federal Open Market Committee Statement and Economic Projections. The central bank is expected to hike its base interest rate from 4.00% up to 4.50%.
On Thursday, at 12:00 GMT, the Bank of England is going to announce its interest rate decision. The central bank is most likely going to take into account the decision of the Federal Reserve. Note that the BoE and the ECB have scheduled their rate decision meetings in the aftermath of the US rate announcement.
Later on, at 13:30 GMT, the US Retails Sales data and Empire State Manufacturing Index might cause an adjustment in the value of the US Dollar.
The week will end with the publication of Markit Services and Manufacturing sector Purchasing Managers Index survey data. United Kingdom data is set to be published at 09:30 GMT. The UK data is followed by US data at 14:45 GMT.
GBP/USD short-term view
A surge above 1.2300 could encounter resistance in the Friday's high level at 1.2320, before approaching the weekly R1 simple pivot point at 1.2371.On the other hand, a decline would look for support in the combination of the weekly simple pivot point at 1.2238 and the 100 and 200-hour simple moving averages near 1.2230. Further below, the 1.2200 mark might act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has reached the summer high level zone at 1.2275/1.2330. As expected, it is acting as resistance.Above the summer high level zone, take into account the April and May resistance at 1.2610/1.2660.
Daily chart
Read More: Technical Analysis
Traders remain short
Before the US CPI, traders were bearish, as 60% 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 60% to sell the GBP/USD.
Before the US CPI, traders were bearish, as 60% 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 60% to sell the GBP/USD.