The surge of the GBP/USD almost touched the 1.2500, as it reversed. Namely, by the middle of Monday's trading session the rate had touched the low level of 1.2425.
In general, the rate was expected to wait for the hourly simple moving averages or decline down to them.
Economic Calendar
On Wednesday, September 18, the UK CPI data will be published at 8:30 GMT. Since March, the given released has moved the GBP/USD rate from 13.6 to 23.1 pips.
Also, on Wednesday the FOMC Statement and the Federal Fund Rate data will be released at 18:00 GMT. The previous release moved the rate for 62.5 pips.
The week will end with two data releases from the UK on Thursday, September 19. Firstly, the UK Retail Sales data will be released at 8:30 GMT. Secondly, the BoE Monetary Policy Statement and the Official Bank Rate will be published at 11:00 GMT.
GBP/USD short-term review
After touching the 1.2500 level on Friday, the GBP/USD began a decline, which was continuing on Monday morning.In general, the rate was expected to test the support of the weekly pivot point at 1.2416, the 55 and 100-hour simple moving averages, respectively, at 1.2400 and 1.2375. These support levels might force the pair into trading sideways.
If these levels are passed, the pair would decline down to the technical support cluster that is located from 1.2314 to 1.2328.
Hourly Chart
On the daily candle chart, the rate has reached the resistance of the 100-day simple moving average at 1.2515.
The resistance has to be passed for the rate to resume its surge, which could reach the 1.2600 level.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral, as 54% of orders were set to buy and 46% were to sell.
Previously, 81% of trader orders were to sell.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral, as 54% of orders were set to buy and 46% were to sell.
Previously, 81% of trader orders were to sell.