The GBP/USD has jumped to the 1.2940 level on Monday. The rate has surged almost 1.30% during the last three trading sessions.
By the middle of the day's trading the pair was signalling that it might reach even higher, as soon as it consolidates its recent gains.
The British Pound appreciated against the US Dollar, following the UK Retail Sales data released on Friday at 09:30 GMT. The GBP/USD exchange currency rate gained 21 pips or 0.16% during a minute, right after the release. The British Pound continued trading at the 1.2825 area against the US Dollar.
The Office for National Statistics released UK Retail Sales data that came out better than expected of 1.0%, compare to forecasted 0.2%.
"Clothing stores saw strong sales, luring consumers with price reductions, with food sales also growing after a slight dip after Christmas," said ONS statistician Rhian Murphy.
Busy week for the US and the UK
This week will have various data releases in various countries that will influence many currency exchange rates. Although, the main event of the week will be the release of the Federal Open Markets Committee Meeting Minutes on Wednesday.The data releases will start on Tuesday. At 09:30 GMT the UK will publish their employment data. The Average Earnings index will have the biggest impact on the value of GBP.
On Wednesday, the already mentioned FOMC Meeting Minutes will be published at 19:00 GMT. They are expected to cause an impact on all USD pairs.
On Thursday, EUR traders will pay attention to the Markit released European Services and Manufacturing PMIs. The German release at 08:30 GMT is the most important.
Later on during the same day the US Durable Goods Orders and Core Durable Goods Orders will be published.
The week will end with the Canadian Core Retail Sales at 13:30 GMT on Friday.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more information watch the weekly Calendar Analysis stream recording.
GBP/USD short term review
During the second half of the day's trading it could be seen that the rate was finding support in the pivot point at 1.2925.If the support forces the rate into a surge, it will aim at the weekly R1 at the 1.2975 mark. However, take into account that after the recent jump the pair needs to consolidate its gains.
Although, take into account that the Brexit turmoil news continue, as even today there were news on Dukascopy feeds that seven lawmakers quit due to feeling betrayed.
Hourly Chart
On the daily chart it can be seen that the rate will face the resistance of the 200-day SMA at the 1.3010 level. Moreover, note that the SMA is moving lower and might strengthen the weekly R1 during this week.
Meanwhile, on Monday it could be observed that the pair is being supported by the 100-day simple moving average at the 1.2890 level. The 100-SMA seemed to be moving sideways.
It is possible that in the upcoming weeks the two SMAs will meet. Usually the meeting of SMAs are correlating with large sudden moves. Daily chart
Although, the trader set up pending orders were signalling that selling might occur, as 60% of all orders in the 100-pip range were set to sell.