On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.
GBP/USD short-term view
A move above 1.02180 might immediately encounter resistance in the 1.2200 level, the 100-hour SMA near 1.2220 and the 1.2250 mark. Higher above, note the last week's high levels at 1.2300 and 1.2350.On the other hand, a decline of the GBP against the USD could look for support in the 200-hour simple moving average near 1.2125 and the 1.2100 mark, before reaching the 1.2050 level and the weekly S1 simple pivot point at 1.2015.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has reached the summer high level zone at 1.2275/1.2330. As expected, it is acting as resistance.Above the summer high level zone, take into account the April and May resistance at 1.2610/1.2660.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, traders were bearish, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 64% to sell the GBP/USD.
On Tuesday, traders were 61% short and pending orders were 64% to sell.
On Wednesday, traders were bearish, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 64% to sell the GBP/USD.
On Tuesday, traders were 61% short and pending orders were 64% to sell.