On Thursday morning, GBP traders will all watch the Bank of England Official Bank Rate hike at 11:00 GMT. In addition, the head of the Bank of England Governor Bailey is set to host a press conference at 11:30 GMT.
Later on, watch out for the US Producer Price Index publication at 12:30 GMT. In addition, at the same time the US weekly Unemployment Claims numbers will be out.
On Friday, the UK GDP data is set to reveal whether the UK economy has decreased or increased in size. However, the market forecasters expect the UK to have stagnated at 0.00%.
GBP/USD short-term view
The ongoing surge of the pair might encounter resistance in the 1.2700 mark and the weekly R1 simple pivot point at 1.2706. Higher above, note the weekly R2 at 1.2788 and the 1.2800 level.Meanwhile, a potential retracement back downwards might look for support in the 1.2650/1.2670 range. Afterwards, the combination of the 50 and 100-hour simple moving averages could slow down a decline near 1.2600. Further below, note the weekly simple pivot point at 1.2571 and the 200-hour SMA near 1.2700.
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.Most recently, the late 2022 high level zone could stop the pair near 1.2600. Above the zone, the 1.3000 will act as resistance.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
Before the CPI, 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 50%/50% to buy and sell the GBP/USD.
After the event, open positions were 72% short and pending orders were 55% to sell.
Before the CPI, 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 50%/50% to buy and sell the GBP/USD.
After the event, open positions were 72% short and pending orders were 55% to sell.