In general, the pair reacted to the UK higher than forecast inflation data, which caused the sure. Namely, higher inflation means more monetary tightening and a smaller supply of the GBP, which results in a higher price. In regards to the near term future, the pair is set to wait for the US FOMC Meeting Minutes on Wednesday at 18:00 GMT, before a new short term trend would be established. Economic Calendar
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
If the pair declines, the 1.2050 level might act as support. Further below, note the 1.2000 mark and the August low at 1.2003. Meanwhile, the pair appears to have ignored the weekly S1 simple pivot point at 1.2067.However, a recovery of the Pound against the USD would have to break the combined resistance of the 1.2150 level and the weekly simple pivot point at 1.2152. prior to reaching the 1.2200 and 1.2300 levels.
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 of 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.
In the meantime, note that the 1.2000 mark has acted both as resistance and support since the middle of June.
Daily chart
Read More: Technical Analysis
Traders are long on GBP/USD
Prior to the Fed Meeting Minutes, traders were bullish, as 61% 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 54% to sell the GBP/USD.
Prior to the Fed Meeting Minutes, traders were bullish, as 61% 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 54% to sell the GBP/USD.