On the GBP/USD charts the event resulted in an attempt to reach the resistance of the 1.2250 mark. However, the pair apparently reversed near 1.2140. Economic Calendar
Next week, watch out for the publication of the US Producer Price Index data on Wednesday at 13:30 GMT. The data will reveal inflation at the production level.
In addition, the US Retail Sales data is set to be published together with the PPI. The retail sales are set to signal whether or not the US consumers are continuing to purchase goods, despite the ongoing inflation.
GBP/USD short-term view
An extension of the decline of the GBP/USD might look for support in the combination of the 1.2150 level, the 50 and 100-hour simple moving averages. Further below, note this week's support and late December resistance zone at 1.2100/1.2115.However, a surge of the Pound against the US Dollar is set to face resistance in the weekly R1 simple pivot point at 1.2195 and the 1.2200 mark, prior to approaching the 1.2250 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has pierced the support of the 50-day simple moving average. Meanwhile, the support of the 200-day SMA has been holding. Further below, note the support and resistance zone near the 1.1800 mark.Daily chart
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Traders are slightly bullish
After the US CPI release, traders were 53% bullish, as 53% 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 52% to buy the GBP/USD.
After the US CPI release, traders were 53% bullish, as 53% 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 52% to buy the GBP/USD.