As forecast, the GBP/USD currency exchange rate surge on Monday. However, the surge was caused by the 55-hour SMA instead of the 200-hour SMA.
In the meantime, the rate has revealed a channel up pattern, which has guided the rate since Friday.
Economic Calendar
Notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Wednesday, the UK Consumer Price Indices could cause an increase of volatility. However, it is highly unlikely, as it has occurred quite rarely during the recent past.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
The week will end with retail sales data from the UK at 07:00 GMT
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
On Tuesday morning, the GBP/USD currency exchange rate once again found support in the combination of the 55 and 100-hour simple moving averages, which were located just below the 1.3200 mark.In the meantime, note the recently added channel up pattern, which has guided the rate's recent surge.
In regards to the near term future, the rate has no technical resistance except the upper trend line of the pattern as high as 1.3310, where the weekly R1 simple pivot point was located at. Due to that reason, the pair is expected to surge and look for resistance in the psychological effect of the round exchange rate level of 1.3300.
However, note that the rate could retrace back down to the weekly simple PP, the 55 and 100-hour SMAs and the lower trend line of the channel up pattern. At mid-day on Tuesday, these support levels were located in the 1.3208 to 1.3192 range.
Hourly Chart
On the daily candle chart, on Monday, Dukascopy Analytics spotted a channel up pattern. The channel captures the rate's recovery that has been occurring since the start of September.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 58% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell the GBP/USD pair.
On Monday, 65% of orders were to buy.
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 58% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell the GBP/USD pair.
On Monday, 65% of orders were to buy.