On Monday, the GBP/USD currency exchange rate traded in the 1.2900 and 1.2960 range. In the meantime, the pair was being approached by the additional support of the 55 and 100-hour simple moving averages.
In the near term future, the rate was expected to surge, as it had no technical resistance as high as 1.3030.
Economic Calendar
Pay attention to the economic data releases already on Monday. On Monday, at 14:00 GMT the Institute of Supply Management will publish the Non-Manufacturing Purchasing Managers Index results. GBP/USD has moved 13.3 to 29.1 pips on the event.
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
On Friday, at 06:00 GMT, GBP pairs could move on the publication of the UK GDP data. The event has caused moves from 8.5 to 20.6 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
The GBP/USD exchange rate has broken the upper boundary of the medium-term descending channel.Given that the currency pair is supported by the 55– and 100-hour SMAs, as well the weekly PP in the 1.2900 area, it is likely that some upside potential could prevail in the market. The pair could target the resistance level formed by the weekly R1 and the monthly PP at 1.3028.
In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below the support formed by the 200-hour SMA and the weekly S1 in the 1.2820 area.
Hourly Chart
On the daily candle chart, the 55-day simple moving average was strengthening the resistance of the 1.3000 mark.
Note that the 1.3000 level stopped the rate's surge in the middle of September.
Daily chart
Read More: Technical Analysis
Sentiment is unchanged
Since Friday, 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP/USD pair.
The orders had not changed since Friday.
Since Friday, 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP/USD pair.
The orders had not changed since Friday.