At mid-day on Tuesday, the GBP/USD currency exchange rate broke the resistance line of the channel up pattern, which captured the rate since the middle of last week. In addition, the resistance of the 50, 100 and 200-hour simple moving averages was passed. However, the pair found resistance in the weekly simple pivot point at 1.3568.
Economic Calendar
On Tuesday, at 13:30 GMT, the US Producers Price Index data will reveal, how high is the inflation at the production level.
On Wednesday, at 07:00 GMT, the UK Consumer Price Index is set to reveal consumer inflation in the United Kingdom.
Possibly the top event of the week will take place on Wednesday at 19:00 GMT, as the US Federal Open Markets Committee Meeting Minutes will be published. The Meeting Minutes provide an insight to the decisions of the US Federal Reserve.
On Thursday, the US Unemployment Claims could cause an adjustment of the USD value.
The week will end on Friday with the UK Retail Sales data at 07:00 GMT
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the Pound continues to surge against the US Dollar, the pair would have to pass the weekly simple pivot point at 1.3568. Above the pivot point, resistance could be found in the 1.3600 mark, before the rate tests previous February high levels near 1.3620 and 1.3640.Meanwhile, a decline of the GBP/JPY might look for support in the 1.3500 mark and the weekly S1 simple pivot point at 1.3492.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate is trading above the support of the 100-day simple moving average. It appears that after a period of being ignored, the SMA manages to impact the rate.Next target for the pair is the 200-day simple moving average near 1.3700, which reversed the rate's surge in mid-January.
Daily chart
Read More: Technical Analysis
Traders are short
Since Friday, traders were mostly bearish, as 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 59% to buy the GBP against USD.
On Tuesday, the sentiment was 64% short, and pending orders were 50% to buy and sell.
Since Friday, traders were mostly bearish, as 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 59% to buy the GBP against USD.
On Tuesday, the sentiment was 64% short, and pending orders were 50% to buy and sell.