Wednesday is set to be the top day for GBP/USD traders. In the morning, at 06:00 GMT, the UK Consumer Price impact is set to reveal whether the United Kingdom has reached 10.00% annual inflation.
At 12:30 GMT the US Retail Sales and Core Retail Sales data is set to impact the rate through the value of the US Dollar.
Namely, a decreasing or flat retail sales change month on month is set to cause an adjustment of the USD to the downside. Meanwhile, a higher than expected reading could be the catalyst of a surge of the Dollar.
At 18:00 GMT on Wednesday, the US Federal Reserve Meeting Minutes are bound to be published. The details included in the document might be the reason for a USD move.
GBP/USD short-term view
A move below the 1.2050 level could look for support in the combination of the weekly S1 simple pivot point at 1.0227 and the lower trend line of the channel down pattern. Further below, the 1.2000 mark and the August 6 low level of 1.2003 might act as support.However, a breaking of the resistance of the 1.2100 mark and the upper trend line of the channel up pattern might result in the pair testing the combined resistance of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point near 1.2150.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate appears to be trading between two zones since mid-June. The pair is respecting resistance in the 1.2270/1.2330 zone. The resistance zone was recently reached by the 100-day simple moving average.Meanwhile, support was found in July in the 1.1760/1.1805 zone, which marks the 2022 low levels.
Daily chart
Read More: Technical Analysis
Traders are long on GBP/USD
On Monday, traders were bullish, as 62% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to buy the GBP/USD.
On Monday, traders were bullish, as 62% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 56% to buy the GBP/USD.