There are a number of notable upcoming scheduled events to watch.
On June 12 at 12:30 GMT, the United States Consumer Price Index will reveal how inflation has done in the US over the past month. The event will reveal whether the decision to keep US interest rates unchanged has continued to push inflation lower.
On the same day, at 18:00 GMT, the United States Federal Reserve is set to announce its Federal Funds Rate and release the FOMC Statement. In general, the central bank is expected to keep rate unchanged, but the information in the statement will reveal when and how policy changes could occur.
On June 13, the US Producer Price Index will be published at 12:30 GMT. The index shows inflation at the producer level. It is considered that inflation at the producer level results in consumer price increases. However, in most cases that does not occur. Due to this reason the event has a minor impact.
The week afterwards, on June 18 at 12:30 GMT, minor impact could occur due to the publication of the US monthly Retail Sales change. Higher retail sales indicate a healthy economy, but also signal inflation.
The top event for the UK Pound will occur on Thursday, June 20. On that day the Bank of England will announce its monetary policy by releasing the Monetary Policy Statement and setting the Official Bank Rate.
GBP/USD hourly chart analysis
A move below 1.2700 could be slowed down by the 1.2680 level that has acted as support in late May. Further below, take into account that the 1.2650 level has acted as support and resistance. In addition, there is the trend line of the ascending channel pattern that captures the rates broader surge. The trend line is crossing the mentioned levels to the upside.In the case of a recovery of the currency pair, note the previously active support and resistance levels at 1.2750, 1.2800 and the range above it. If these levels are passed, then the rate is bound to be slowed down by 1.2900, before the 1.3000 is reached.
Hourly Chart
GBP/USD daily candle chart analysis
The surge has reached the resistance of a long ago marked resistance zone. We investigated the range and found that certain levels act as resistance. Resistance is provided by the 1.2800, 1.2830, 1.2850 and 1.2900 levels. At these levels major reversals have happened that have started moves that lasted from a month up to a whole quarter.
The GBP/USD could be at a major turning point. Due to this reason watch the ascending channel closely for potential breaking of it and the establishment of a new pattern.
Read More: Technical Analysis
Traders are shorting
On June 7, after the US employment release, traders were 75% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 54% to buy.
Meanwhile, pending orders in the 100-pip range around the rate were 54% to buy.