The following recovery eventually reached the 1.2750 mark that acted as resistance and by the end of Tuesday's trading a decline had started. It was observed that the decline could be stopped by the 1.2720/1.2730 range. 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
A decline below 1.2720 could find support in the combination of the 1.2700 level and the ascending 50 and 100-hour simple moving averages. Further below, take into account the combination of the 1.2650 level and the weekly simple pivot point at 1.2656.On the other hand, a potential extension of the surge and move above 1.2750 would face the resistance of the 1.2780/1.2795 range, the 1.2800 mark, the weekly R1 simple pivot point at 1.2812 and the August high level at 1.2819.
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 Friday, traders were 61% short, as a decline was expected. Meanwhile, pending orders were 52% to sell.
On Monday, traders were 61% short, but pending orders in the 100 pip range around the pair were 54% to buy. Clearly, the short positions were in profit.
On Tuesday, positions were 63% short. Despite the recover, traders were still short. Moreover, more volume was in shorts positions. In the meantime, pending orders were 58% to buy.
On Friday, traders were 61% short, as a decline was expected. Meanwhile, pending orders were 52% to sell.
On Monday, traders were 61% short, but pending orders in the 100 pip range around the pair were 54% to buy. Clearly, the short positions were in profit.
On Tuesday, positions were 63% short. Despite the recover, traders were still short. Moreover, more volume was in shorts positions. In the meantime, pending orders were 58% to buy.