On Monday morning, the GBP/USD broke the resistance levels that were located from 1.2940 to 1.2960. This resulted in a sharp surge that by 09:00 GMT managed to reach above the 1.3000 mark.
In the near term future, the rate was expected to test the monthly pivot point at 1.3028 and the weekly R1 pivot point at 1.3049.
Economic Calendar
On Wednesday, at 06:00 GMT the UK Consumer Price Index release could cause a move from 9.8 to 22.2 base points.
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the GBP/USD currency exchange rate could be impacted by the UK and US Markit Services and Manufacturing Purchasing Managers Indices.
The UK data could cause a move from 18.5 to 25.0 pips at 08:30 GMT. Afterwards, at 13:35 GMT the US PMIs could cause a move from 8.8 to 21.2 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
The rate is set to reach for the monthly pivot point at 1.3028. It was expected that the GBP/USD would consolidate by trading sideways below this level. However, the pair could also consolidate by retracing back down to the 1.3000 mark.On the other hand, in the case of the monthly pivot point being broken, the rate would immediately face the resistance of the weekly R1 simple pivot point at 1.3049. If this level fails, the rate would aim at the psychological level of 1.3100.
Hourly Chart
On the daily candle chart, previously the 55-day simple moving average was pierced. The GBP/USD showed that it can pass this resistance level.
In the meantime, the 100-day SMA was approaching the rate and supported the 1.2830 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, 51% of volume was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell the GBP/USD pair.
On Friday, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, 51% of volume was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell the GBP/USD pair.