On Wednesday, the US Retail Sales and Core Retail Sales is bound to impact the USD value at 12:30 GMT.
The top event of the month is scheduled for Wednesday's 18:00 GMT. The US Federal Reserve will publish its Economic Projections and Statement. The central bank is expected to hike interest rates. The question remains among market participants whether a 0.50% or 0.75% hike occurs.
Note that after the official announcement a press conference is scheduled for 18:30 GMT.
On Thursday, the Bank of England is set to hike its interest rate at 11:00 GMT. The bank is expected to hike interest rates from 1.00% up to 1.25%.
In addition, note that the markets are set to react to the information about the future that will be included in the Monetary Policy Summary.
GBP/USD short-term review
In general, a passing below 1.2100 could result in the pair reaching the 2019 low level at 1.1960. However, take into account that support might be found in the 1.2000 and 1.2050 levels.On the other hand, a potential recovery of the Pound against the US Dollar would have to pass the 1.2200 mark, the weekly S1 simple pivot point and the 50-hour simple moving average, before reaching higher levels.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the drops of the Pound has reached the 2020 May low level at 1.2075.Meanwhile, the recent high levels were used to mark a new 2022 channel down pattern, which could guide the pair in the future. Note the support line of the pattern near 1.1800.
Daily chart
Read More: Technical Analysis
Traders are long
On Monday, traders were 63% long, as 63% 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.
On Tuesday, the open positions were 62% long and pending orders were 63% to buy. Traders appeared to be expecting a retracement back up.
On Monday, traders were 63% long, as 63% 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.
On Tuesday, the open positions were 62% long and pending orders were 63% to buy. Traders appeared to be expecting a retracement back up.