During Monday morning, the GBP/USD exchange rate was trading at the 1.3350 level. Given that the rate is supported by the 55-hour SMA, it is likely that some upside potential could prevail in the market.
On the other hand, some volatility could occur due to the UK Bank Stress Test Results release at 16:00 GMT.
Economic Calendar
This week, the data that might impact the GBP/USD is set to start on Tuesday. The UK Average Earnings Index is set to be published at 09:30 GMT. This event has caused moves from 11.0 to 22.9 pips since July 2019.
On Wednesday, the UK CPI is scheduled to be released at 09:30 GMT. This event could create a move from 13.6 to 20.8 pips.
On Thursday, at 09:30 GMT, the United Kingdom Retail Sales data will be made public. The Retail Sales could cause a move from 12.0 to 15.9.
On the same day, at 12:00 GMT, the event of the week for the Pound will take place. The Bank of England Official Bank Rate and the Bank of England Monetary Policy Summary will be published.
On Friday, two data release should be watched by the GBP/USD traders. The UK Current Account with 8.3 to 38.4 pips at 09:30 GMT and the US Final GDP with 8.1 to 52.0 pips at 13:30 GMT.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
GBP/USD short-term review
At the previous trading session, the GBP/USD exchange rate declined to the 1.3350 level. During Monday morning, the rate was trading at the given level.It is likely that the currency pair could gain support of the 55-hour SMA, as well the weekly PP at 1.3303 and reverse north in the nearest future. A possible upside target is the resistance level –the Fibo 61.80% at 1.3475.
However, if the given support does not hold, the British Pound could continue to depreciate against the US Dollar in the short run. In this case, the rate could gain support of the 100– and 200-hour SMAs, as well the monthly R3 and the Fibo 50.00% in the 1.3187/1.3244 area.
Hourly Chart
On the daily candle chart, the rate's jump was consistent with the channel up pattern. Note on the pattern that the 1.3510 level is the last technical resistance level before the upper trend line of the pattern near 1.3700.
Daily chart
Read More: Technical Analysis
Large short sentiment
On Monday, 73% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 54% of orders were buy and 46% were to sell.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 54% of orders were buy and 46% were to sell.