This week, watch out for the US Core PCE Price Index release on Friday at 12:30 GMT. The inflation measure is bound to impact the financial markets through the value of the US Dollar.
GBP/USD hourly chart analysis
If the 1.2620 level once again acts as support, the pair could recover and face the resistance of the weekly simple pivot point at 1.2668 and the combination of the 50, 100 and 200-hour simple moving averages near 1.2680. Note that the 200-hour SMA has been acting as resistance during the early trading of this week. Above these levels, the 1.2700 is highly likely going to act as resistance.On the other hand, a decline of the Pound against the US Dollar below the 1.2620 level could look for support in the 1.2600 mark and the weekly S1 simple pivot point at 1.2596. Further below, support could be found in the weekly S2 at 1.2550.
Hourly Chart
GBP/USD daily candle chart analysis
We wrote at the start of the month: "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."
This week it could be observed that the reversal had occurred, but it has found support in the combination of the 50, 100 and 200-hour simple moving averages near 1.2650.
Read More: Technical Analysis
Traders are neutral
The Dukascopy open positions are neutral, as 51% of all open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the rate were 53% to sell the pair.
Meanwhile, pending orders in the 100-pip range around the rate were 53% to sell the pair.