The GBP/USD pierced the support of the June low levels and shortly traded near the 1.4040 level. Afterwards, the pair returned to trade near the 1.4080 level.
On Wednesday morning, the rate began a surge, which reached above the 1.4100 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 near term future, the rate could test the combined resistance of the 100 and 200-hour simple moving averages and the weekly simple pivot point from 1.4115 to 1.4132. If these levels are broken, the weekly R1 simple pivot point at 1.4179 might be reached.On the other hand, a potential bounce off from the 1.4115/1.4132 zone would find support in the 55-hour SMA and the 1.4100 mark before reaching the previous June low level zone and the weekly S1 simple pivot point at 1.4062.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD has broken out of the channel up pattern, which guided it since April.A potential target for the larger scale decline could be the 1.4000 level, which provided resistance and support in March, April and May. In addition, the 1.4000 mark is strengthened by the 55-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell.
On Wednesday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell.