Our traders were 61% since Friday. It is assumed that most have their positions in profit.
Economic Calendar
During the week before Christmas, there will be a couple of data releases that could impact the financial markets.
First of all, on Wednesday the United Kingdom Office for National Statistics will publish the UK's Consumer Price Index change at 07:00 GMT.
On Thursday, not the publication of the US Final GDP at 13:30 GMT. This is the final of the three quarterly US GDP releases. The United States release quarterly Gross Domestic Data over a span of a quarter. Data is published in three releases – Advance, Preliminary and Final. The most impact comes from the Advance GDP, and the least is from the upcoming Final GDP.
On Friday morning, the UK Retail Sales data could impact the Pound at 07:00 GMT.
Also on Friday, the United States Bureau of Economic Analysis will publish the Core Personal Consumption Expenditure Price Index at 13:30 GMT. The change of the index shows how inflation impacts consumers. It is different from the CPI with the fact that it measures only goods that are consumed by individuals.
GBP/USD hourly chart analysis
An extension of the ongoing decline could look for support in the 200-hour simple moving average and the 1.2590/1.2610 range. If the currency rate reached below the support and resistance zone it might be slowed down by the 1.2550 level, before the rate reaches the weekly S1 simple pivot point at 1.2518 and the 1.2500/1.2515 low level zone.In the meantime, a potential Pound's recovery against the US Dollar would have to break the 1.2700 mark, prior to testing the combination of the 50-hour simple moving average and the 1.2720/1.2730 range. Above these levels, the last week high level range is set to act as resistance at 1.2780/1.2795
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, resistance is provided by the 1.2800/1.2850 range. This range kept the pair down in June and August. A move above it could encounter resistance in the 1.3000 mark, before the rate reaches the July high levels above 1.3100.On the other hand, a decline below 1.2700 might look for support in the 200-day simple moving average and the supporting trend line near 1.2530. However, it has been the 1.2500 mark that has acted as support on its own.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, traders were 61% short, but pending orders in the 100 pip range around the pair were 54% to buy.
On Friday, traders were 61% short, as a decline was expected. Meanwhile, pending orders were 52% to sell.
Clearly, the short positions were in profit.
On Monday, traders were 61% short, but pending orders in the 100 pip range around the pair were 54% to buy.
On Friday, traders were 61% short, as a decline was expected. Meanwhile, pending orders were 52% to sell.
Clearly, the short positions were in profit.