The GBP/USD broke the resistance levels at 1.2800 and at 1.2835. Namely, the rate reached the 1.2925 level on Monday. However, after touching the high level, the rate retraced back down.
On Tuesday, the rate was consolidating by trading with 50 pip volatility above the support of 1.2835 level.
Economic Calendar
The week will start with a long forgotten data release. The UK quarterly GDP is scheduled to be published on Wednesday at 06:00 GMT. The event has caused GBP/USD moves from 8.3 to 23.7 pips since June 2019. Due to the quite rare caused movement, this release was previously ignored.
Afterwards, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move. For example, the GBP/USD has moved from 10.2 to 21.5 pips on the announcement.
On the same day, at 12:30 GMT the US are publishing GDP data. A GBP/USD move of 8.1 to 37.4 pips has occurred on the release. However, the 37.4 pip move was an anomaly caused by the coronavirus.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. GBP/USD has moved from 22.8 to 43.0 pips on the announcement.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate jumped to the resistance level formed by the weekly R1 at 1.2923.It is likely that the currency pair could gain support from the monthly S2 at 1.2835 and re-test the upper line of the medium-term descending channel circa 1.2950. If the given channel holds, a reversal south could follow.
In the meantime, if the predetermined resistance and support levels hold, it is likely that the exchange rate could trade sideways within the following trading session.
Hourly Chart
On the daily candle chart, the rate is located above the 100 and 200-day simple moving averages that are located at 1.2735.
In the meantime, the rate faces additional resistance from the 55-day simple moving average at 1.3000.
Daily chart
Read More: Technical Analysis
Sell orders are gone
On Tuesday, 59% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, 55% of volume was long.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.
Previously, the orders were 92% to sell.
On Tuesday, 59% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, 55% of volume was long.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.
Previously, the orders were 92% to sell.