The decline passed below the previously marked support range near 1.2680. However, the rate started a recovery near 1.2660. By doing so the rate revealed that the support range is wider than previously marked.
At 06:00 GMT, the United Kingdom published its monthly Gross Domestic Product data. The UK economy was expected to have grown by 0.2%. However, it turned out that the country has recovered in economic scale by 0.5%. The event caused a sharp surge of the GBP/USD of 0.22%. The surge was stopped by the 50-hour simple moving average near 1.2720. Economic Calendar
On August 11, the markets will look at the US Producer Price Index at 12:30 GMT to analyse potential consumer price increases in the future.
Producers usually increase their prices in accordance with their own expense increases. Namely, they quite often investigate the consumer tolerance of price hikes by continuous increases until they spot a drop in volume. In the current environment some firms have reached this point.
GBP/USD short-term view
In regards to the near term future, the pair is set to face the resistance of the 50-hour SMA at 1.2720, before testing the combination of the 100 and 200-hour SMAs and the weekly simple pivot point at 1.2735/1.2745. In addition, the 1.2750 level could act as resistance. Higher above, take into account the 1.2783/1.2793 range and the 1.2820 level.If the Pound declines in value against the US Dollar, support is expected to be found at 1.2667/1.2685, prior to the rate reaching the weekly S1 simple pivot point at 1.2618 and the 1.2600 mark.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the 1.2800 mark and the 50-day simple moving average. The levels turned into resistance at the start of the month. A move above the resistance could aim at the 1.3000 mark.Most recently, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving average. A passing below these support levels could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are bullish on GBP
On Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 62% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 62% to sell.
On Friday, open GBP/USD positions by Swiss Foreign Exchange traders were 62% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 62% to sell.