Economic Calendar
This week, the top event of the week will be the announcement of the US Federal Reserve Federal Funds Rate at 18:00 GMT. The Fed is expected to hike its base interest rate from 5.00% up to 5.25%. A larger increase or no increase at all would cause a sharp adjustment of the value of the US Dollar. Subsequently all of financial markets would be impacted. Meanwhile, note that the Fed has stated that rate cuts are not going to happen in 2023.
The rate publication is scheduled to be followed by the Press Conference of the Chairman of the Federal Reserve Jerome Powell at 18:30 GMT. In most cases, comments made by the head of the central bank cause more volatility than the rate announcement. Sometimes, the comments of Powell reverse the direction of the USD.
In regards to the Fed decision, note that the head of the central bank has commented in the past that they monitor the PCE Core Inflation data. On Friday, the data set revealed that month on month the personal consumption expenditures increased by 0.3%.
GBP/USD short-term view
An extension of the ongoing decline might find support in the weekly S1 simple pivot point at 1.2437. Further below, note the support zones at 1.2387/1.2390 and 1.2345/1.2350.On the other hand, a recovery of the pair is set to face the combined resistance of the 1.2500 mark, the 50 and 100-hour simple moving averages and the weekly simple pivot point at 1.2510. Higher above, the 1.2560 and 1.2580 levels are expected to act as resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has passed the resistance zone of the 2023 high levels at 1.2300/1.2450. Higher above, the late 2022 high level zone could stop the pair at 1.2600.However, for most of April the GBP/USD has been consolidating by trading rather flat.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Monday, traders were 71% bearish, as 71% 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 53% to buy the GBP/USD.
On Tuesday, positions were 69% short and orders were 52% to buy.
On Monday, traders were 71% bearish, as 71% 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 53% to buy the GBP/USD.
On Tuesday, positions were 69% short and orders were 52% to buy.