On Monday morning the GBP/USD traded in limbo below the 1.3100 level. Namely, it was squeezed in between the resistance of the 1.3100 and the support of the weekly pivot point at 1.3080.
In addition, note that the 1.3080 level had additional support that was provided by the 55 and 100-hour simple moving average.
The British Pound appreciated against the US Dollar, following the UK GDP data release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.05% during a minute, right after the release. The British Pound continued trading at the 1.3065 area against the US Dollar.
Commenting on today's GDP figures, Head of GDP Rob Kent-Smith said: "GDP growth remained modest in the latest three months. Services again drove the economy, with a continued strong performance in IT. Manufacturing also continued to recover after weakness at the end of last year with the often-erratic pharmaceutical industry, chemicals and alcohol performing well in recent months."
UK data starts on Tuesday morning
This week has notable data releases that will both cause significant moves in various currency pairs and be covered by Dukascopy Analytics.During Monday's trading session this week's Economic Calendar Overview video will be published. In that you can take a look at the scheduled data releases and ask questions in the comments.
Data releases will start on Tuesday. On that day the UK Average Earnings Index will be published at 08:30 GMT.
On Wednesday, the UK Consumer Price Index will be released at 08:30 GMT. Afterwards, at 12:30 the Canadian CPI and Trade Balance will be released. This is expected to cause the biggest impact during this week.
The data flow will end on Thursday. The European Manufacturing PMIs will be released at 07:15 GMT and 07:30 GMT. Dukascopy Analytics will cover the 07:30 GMT, as at that time the German PMI will be published. The German data causes the biggest reaction on EUR pairs.
An hour later, at 08:30 GMT, the UK Retail Sales will be published.
Last but not least, the Canadian and US Retail Sales will be published at 12:30 GMT. Both data sets combined could cause a move on the USD/CAD of up to 30 pips.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
GBP/USD short term review
During the last trading session the GBP/USD has largely ignored the support and the resistance of the various technical levels. Due to that reason they are no longer useful for analysis.Meanwhile, it could be observed that the new weekly pivot point was keeping the rate above 1.3080. In the meantime, the 1.3100 level was providing psychological resistance to the currency exchange rate.
Watch out for one of these levels being broken. If the 1.3100 is broken, a surge might occur. On the other hand, if the 1.3080 fails to provide support, a decline should take place.
Hourly Chart
On the daily chart the rate is being pushed down by the resistance of the 55-day simple moving average, which on Monday was located at 1.3095.
Meanwhile, the 200-day SMA no longer was close enough to support the currency exchange rate. Due to this development the rate was only supported by the lower trend line of a large scale pattern near 1.3050.
Daily chart
Since Thursday, the SWFX sentiment was balanced. 50% of all open position volume was short and the other 50% was long.
Meanwhile, the pending orders in the 100-pip range from the rate had become bearish. Namely, 56% of orders in that range were set to sell.