On Monday morning, the GBP/USD reached the June low level zone at 1.4075/1.4085. The near term future was dependent on what would happen at this level.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Retail Sales and US Producers Price Indices are expected to be released. The Retail Sales have caused moves from 14.0 to 22.6 pips since January. The PPI has moved the GBP/USD from 8.5 to 22.8 pips during this year.
Wednesday would start with the UK Consumer Price Index at 06:00 GMT. This event has created moves from 8.8 to 13.2 pips.
On the same day, the top event of the week would occur. At 18:00 GMT, the US Federal Funds Rate and Fed Statement could cause a move from 20.9 to 60.6, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 9.5 to 22.8 pips.
The UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 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
In the case of the rate passing the support zone of the June low levels, the rate would most likely immediately find support in the weekly S1 simple pivot point at 1.4062. Afterwards, an extension of the decline could eventually reach the support of the weekly S2 simple pivot point at 1.4000.On the other hand, if the support zone holds, the rate could recover. A recovery could find resistance in the 1.4126/1.4144 zone. In that zone the weekly simple pivot point and the 55, 100 and 200-hour simple moving averages would provide resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD remains in the borders of the channel up pattern, which has guided it since early April. The rate has been trading sideways in the borders of the pattern.Most recently, the currency exchange rate has reached the lower trend line of the pattern.
Daily chart
Read More: Technical Analysis
Traders close short positions
On Friday, traders have been short, as 74% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 71% of positions was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to buy.
Previously, pending orders were 77% to sell.
On Friday, traders have been short, as 74% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 71% of positions was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to buy.
Previously, pending orders were 77% to sell.