On Friday, at 13:30 GMT, inflation at the producer level will be revealed, as the US Producer Price Index will be published. It is considered that producer level inflation eventually turns into consumer inflation, as producers increase consumer goods prices.
GBP/USD hourly chart analysis
A move below 1.2700 could look for support in the various recent low levels at 1.2685 and 1.2675, before the pair reaches the notable 1.2590/1.2610 range.In the case of a recovery of the Pound against the US Dollar, the rate has to break the 1.2780/1.2795 range and the 1.2800 level.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, support might be provided by the combination of the 50 and 200-day simple moving averages near 1.2600 and 1.2550.Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, traders were 59% short, and pending orders in the 100 pip range around the rate were 53% to buy.
During Wednesday's trading hours, open positions were 57% short.
Meanwhile, the pending orders were set up for further opening of short positions, as 57% of orders were to sell.
On Friday, traders were 64% short and orders were 53% to sell.
During Wednesday's trading hours, open positions were 57% short.
Meanwhile, the pending orders were set up for further opening of short positions, as 57% of orders were to sell.
On Friday, traders were 64% short and orders were 53% to sell.