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
A resumption of the GBP/USD move upwards could encounter resistance in the 50-hour simple moving average at 1.2210. Higher above, the 1.2240 level might slow down a surge, prior to the rate reaching the weekly R1 simple pivot point at 1.2288.Meanwhile, a decline of the Pound against the USD below 1.2180 could result in the rate descending to the support of the weekly S1 simple pivot point at 1.2119 and the 200-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair trades between a resistance zone at 1.2305/1.2455 and support zone at 1.1740/1.1840.Daily chart
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Traders go short
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.
On Tuesday, the open positions were 53% short and pending orders were 52% to buy.
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.
On Tuesday, the open positions were 53% short and pending orders were 52% to buy.