On Monday, the GBP/USD traded below the 1.3000 level. However, it could be noticed that the rate was most likely going to retrace back upwards.
Namely, it had encountered the support of a descending pattern, which had forced the pair into a retracement that had no resistance as high as the 1.3058 level.
Busy start of the week
This week will be unusual. The majority of the notable macroeconomic events will take place at the start of the week.Namely, on Monday, the US Retail Sales and Core Retail Sales are set to be released at 12:30 GMT. This event might cause a reaction of up to 20 base points.
On Tuesday, the day will start with the UK GDP and Manufacturing Production data release at 09:30 GMT.
Afterwards, at 12:30 GMT the US Consumer Price Index and Core Consumer Price Index will be published.
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
Click Here: Economic Calendar Analysis
GBP/USD short term review
During Friday's trading session, the British Pound depreciated to the 1.2950 level. On Monday morning, the European Single Currency was located at the 1.2999 mark.In regards to the near term future, most likely, the currency exchange rate will be trading sideways to stay at the 1.3000 level during the day.
On the other hand, the US Dollar might appreciate against the British pound during today's US Retail Sales and Core Retail Sales data release at 12:30 GMT to fall to the monthly S2 at the 1.2905 level.
Hourly Chart
On the daily chart the recent moves have been consistent with a dominant ascending pattern. The rate is retracing downwards in the borders of it.
Previously, it was stated that the decline will reach the 1.3000 level. That target has been touched.
However, there is still more room for a decline. Namely, the 1.2920 level could be reached during the near future.
Daily chart
Read More: Technical Analysis
Traders remain short
Traders continue to mostly short the GBP/USD. On the Swiss Foreign Exchange of the total open position volume 57% was short on Monday.
Meanwhile, the pending orders were neutral. 51% of pending commands in the 100-pip range were set to buy the GBP/USD.
In general, traders remain short.
Meanwhile, the pending orders were neutral. 51% of pending commands in the 100-pip range were set to buy the GBP/USD.
In general, traders remain short.