This week, all attention will be on the US Core PCE Price Index release on Friday at 12:30 GMT.
GBP/USD short-term view
Eventually, the decline of the Pound against the US Dollar might find support and start a recovery. A potential recovery could face resistance in the weekly S1 simple pivot point at 1.2170 and the 50-hour simple moving average. Higher above, note the approaching 100-hour SMA and the 1.2200 mark.On the other hand, a decline of the rate further should be gradual, as the lower trend line of the pattern holds. The slow decline or a sudden breaking of the pattern is set to look for support in the 1.2100 mark and the weekly S2 simple pivot point at 1.2103.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pair has continued to decline in the channel down pattern and is expected to continue to decline as low as 1.2000. However, the lower trend line of the pattern could act as support and cause a consolidation that might have the form of either a short term recovery or prolonged sideways trading.Daily chart
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Traders are bullish on GBP
On Wednesday, open GBP/USD positions by Swiss Foreign Exchange traders were 72% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to sell.
On Tuesday, the open positions were 70% long and pending orders were 51% short.
On Wednesday, open GBP/USD positions by Swiss Foreign Exchange traders were 72% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to sell.
On Tuesday, the open positions were 70% long and pending orders were 51% short.