This week, all attention will be on the expected US Federal Reserve Rate hike at 18:00 GMT on Wednesday. The Federal Reserve is expected to increase base interest rate by 0.25%.
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
GBP/USD short-term view
A continuation of the decline might find support in the 1.2800 and 1.2750 levels. Further below, note the weekly S1 simple pivot point at 1.2736 and the two support and resistance ranges at 1.2720/1.2730 and 1.2685/1.2700.However, a recovery of the Pound would have to break the 1.2850 level and the 50-hour simple moving average. Above these levels resistance could be encountered in the 100-hour simple moving average, the 1.2900 mark and the weekly simple pivot point at 1.2931.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, as expected, the pair is finding support in the 1.2610/1.2670 range. This zone stopped the pair's recovery in May.Meanwhile, note the approaching 50 and 100-day simple moving averages. The 50-day SMA has been ignored during May and June. However, the 100-day SMA's support caused the most recent broader surge.
Daily chart
Read More: Technical Analysis
Traders are bearish
Of all open GBP/USD positions SWFX traders have open 64% short positions.
Meanwhile, trader pending orders in the 100 pip range around the current rate are 55% to sell.
On Monday, positions were 68% short and orders were 52% to sell.
Of all open GBP/USD positions SWFX traders have open 64% short positions.
Meanwhile, trader pending orders in the 100 pip range around the current rate are 55% to sell.
On Monday, positions were 68% short and orders were 52% to sell.