On Thursday, at 12:30 GMT, the publication of Final US quarterly Gross Domestic Product is set to be published. The release might impact the USD. However, it is usually the Preliminary GDP release, which impact the markets.
On Friday, the US Core PCE Price Index is set to reveal inflation's impact on the consumers. This indicator is seen by the US Federal Reserve as more important than the CPI. The publication is scheduled for 12:30 GMT.
GBP/USD short-term view
A decline below the 100-hour SMA and the weekly R1 simple pivot point at 1.2260 and 1.2247 might result in a move to the 1.2200 mark and the 200-hour simple moving average. Further below, take into account the 1.2150 level and the weekly simple pivot point at 1.2129.On the other hand, a recovery of the Pound against the US Dollar might encounter resistance in the 1.2300 level, before testing the 1.2335/1.2345 range.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has found support in the zone which surrounds the 1.1800 mark. Most recently, the recovery of the currency pair appears to have pierced through the resistance of the 50 and 100-day simple moving averages.The pair now faces the resistance zone of the 2023 high level zone at 1.2300/1.2450.
Daily chart
Read More: Technical Analysis
Traders are still short on GBP/USD
On Friday, traders were 61% bearish, as 61% 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 52% to buy the GBP/USD.
After the recent rate hikes, the open positions were still 62% short. However, pending orders were 57% to sell.
On Friday, traders were 61% bearish, as 61% 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 52% to buy the GBP/USD.
After the recent rate hikes, the open positions were still 62% short. However, pending orders were 57% to sell.