The GBP/USD passed the support of the 1.3000 level and reached the 200-hour simple moving average near 1.2970. Previously, this was described as one of the likely scenarios
On Tuesday morning, the SMA caused a surge, which pierced various resistance levels, as the rate reached the 1.3040 level.
Economic Calendar
During the week, there are couple events that could impact the GBP/USD rate.
On Wednesday, at 09:30 GMT, the UK CPI is set to be published. It can could create a move from 15.1 to 33.6 pips.
On Thursday, UK Retail Sales data is set to be published at 09:30 GMT.
The week's data is available. Click on the link below to see the historical data tables with the reactions to the events.
Read More: 17.02-21.02 Event Historical Reactions
GBP/USD short-term review
The surge, which was caused by the 200-hour SMA, reached the 1.3040 level during the first half of Tuesday's London trading hours.During the surge, the rate passed the resistance of two pivot points and the 55 and 100-hour simple moving averages. Due to that reason, the pair had no technical resistance as high as the 1.3120 level.
On the other hand, in the recent past the 1.3060 level stopped the rate's two attempts to surge. This level could once again stop the rate from moving higher.
Hourly Chart
On the daily candle chart, the rate has bounced off the resistance of the 55-day simple moving average, which kept the rate down on Thursday and Friday near the 1.3065 level.
In regards to the future, the rate could get squeezed in between the 55 and 100-day simple moving averages. A squeeze could result in a sharp break out either up or down.
Daily chart
Read More: Technical Analysis
Traders remain neutral on GBP/USD
On Tuesday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders were 52% short on Monday.
Meanwhile, trader orders were set to buy. In the 100-pip range, 58% of orders were to buy and 42% were sell orders.
Previously, the pending trade orders were 52% to buy.
Traders were 52% short on Monday.
Meanwhile, trader orders were set to buy. In the 100-pip range, 58% of orders were to buy and 42% were sell orders.
Previously, the pending trade orders were 52% to buy.