On Monday, the 1.2900 level provided the GBP/USD with the needed support for the pair to break most resistance provided by technical levels. By the middle of Tuesday's GMT hours, the rate was approaching the 1.3000 level.
At that level the rate was expected to meet with the resistance trend line of the February high levels.
Economic Calendar
During the week there are no notable events that might impact the currency exchange rate. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published. This event has caused moves from 6.2 to 16.8 pips since August.
Moreover, the 16.8 pip move was an anomaly caused by the simultaneous release of other data together with the Durable Goods orders. Without it, the range is from 6.2 to 11.5 pips.
At the same time, the US Preliminary GDP is scheduled to be published. This is the other data set that together with the Durable Goods orders caused a 16.8 pip move. Without the other data, the GDP has caused moves from 8.0 to 16.1 pips.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 24.02-28.02 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate consolidated in the 1.2930 area. During Tuesday morning, the rate jumped to the 1.2990 level.From a theoretical perspective, it is likely that the currency pair could reverse south from the upper boundary of a medium-term descending channel at 1.3000. This should be followed by a decline that is unlikely to reach below the Fibo 38.20% at 1.2918.
On the other hand, the exchange rate could break the line and re-test the resistance level—the monthly S1 at 1.3021.
Hourly Chart
On the daily candle chart, it could be spotted that the rate had found support in the 1.2850 level on Thursday. This level could stop future declines.
Daily chart
Read More: Technical Analysis
Traders remain neutral on GBP/USD
Since Monday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bearish. In the 100-pip range, 62% of orders were to sell and 38% were buy orders.
Previously, the pending trade orders were 65% to buy.
Meanwhile, trader orders were bearish. In the 100-pip range, 62% of orders were to sell and 38% were buy orders.
Previously, the pending trade orders were 65% to buy.