The GBP/USD did not find support in technical resistance levels above the 1.3600 level. By the middle of Monday's GMT trading hours, the rate had touched the 1.3520 level.
In the near term future, the pair was expected to continue to decline after a short consolidation.
Economic Calendar
This week, UK data releases start on Wednesday at 07:00 GMT. At that time, the UK Consumer Price Index is scheduled to be published. This event has caused GBP/USD moves from 9.7 to 22.2.
On Thursday, at 13:30 GMT, a minor move could be caused by the weekly US Unemployment Claims. This event has caused GBP/USD moves from 8.8 to 45.7 pips since December 17.
However, note that the 45.7 pip move in December 23 was an anomaly caused by other events not the Unemployment Claims. Without the 45.7 pips move, the range is 8.8 to 12.7 pips.
On Friday morning, at 07:00 GMT the UK Retail Sales could cause a move from 6.4 to 16.0 base points.
On the same day at 09:30 GMT, the UK Manufacturing and Services PMIs could cause a move from 13.0 to 18.7 pips.
The Friday will end with the US Manufacturing and Services PMIs at 14:45 GMT. The GBP/USD has moved from 7.8 to 35.5 pips on the release.
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
It is likely that some downside potential could prevail in the market, and the currency pair could test the weekly S1 at 1.3457. If the given support holds, the pair could reverse north.In the meantime, it is unlikely that some upside potential could prevail in the market in the short term due to the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3584/1.3636 range.
Hourly Chart
On the daily candle chart, it can be observed that previously the 1.3700 level strengthened the resistance of the large scale channel up pattern.
In regards to the future, due to the angle of the resistance of the pattern, the rate still has room for a surge. However, a decline to the 55- day SMA is likely, as the rate had done so each time after reaching the upper trend line.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Monday, 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 82% to buy the GBP/USD pair. Previously, the orders were 62% to sell.
On Monday, 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 82% to buy the GBP/USD pair. Previously, the orders were 62% to sell.