The surge of the GBP/USD was stopped by the resistance of the 200-hour simple moving average at 1.2660.
The rate made a couple of attempts at passing it before it plummeted down to the 1.2615 mark.
Bureau of Economic Analysis released the US Prelim GDP data, which came out in line with expectations of 3.1%.
According to the official release: "Today's estimate reflects downward revisions to nonresidential fixed investment and private inventory investment and upward revisions to exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, were revised up; the general picture of economic growth remains the same."
No significant UK data during the week
This week will have various data releases and monetary policy announcements occurring.
On Monday, the ISM Manufacturing PMI will be published at 14:00 GMT. The event has caused moves from 15 to 40 pips during 2019.
On Tuesday, big move catchers might want to watch the Reserve Bank of Australia Cash Rate announcement at 04:30 GMT. This event has caused moves from ten to sixty seven pips since December 2018.
On the same day, at 09:00 GMT the European CPIs are expected to cause a move of approximately of ten pips on the EUR/USD. It is unlikely that the move will be larger, but remember that anomalies occur all the time in Forex.
On Wednesday, a minor move might be caused by the ISM Non-Manufacturing PMI at 14:00 GMT.
On Thursday, all attention will be on the European Central Bank. At 11:45 GMT the Monetary Policy Statement will be published. On the release the EUR/USD has moved from 10 to 35 pips.
The event will be followed by the ECB press conference at 12:30 GMT. During the questions and answers session at the end of it the EUR is bound to make sharp moves.
At the same time the Canadian Trade Balance will be published. This event has caused moves from ten to sixty pips.
The week will end with the Canadian and US employment data being published at 12:30 GMT. This event consists of five different data sets being released.
For more details watch the Economic Calendar Overview. Moreover, feel free to ask questions for details.
GBP/USD short-term review
During Friday, the GBP/USD exchange rate breached the short-term descending channel north. During today's morning, the rate was testing the resistance level formed by the 200-hour SMA and the weekly PP at 1.2648.Note, that the currency pair is supported by the 55– and 100-hour moving averages, currently located circa 1.2630. Thus, the pair could breach the given resistance and maintain its growth. A possible upside target is the 1.2700 level.
Otherwise, it is expected, that the rate could trade sideways round the given moving averages in the short-term. If the given support does not hold, the pair could decline to the 1.2580 level.
Hourly Chart
On the daily candle chart it could be observed that the rate also faced the resistance of a monthly pivot point at 1.2648. Note that a new month has started with new pivot points.
Daily chart
On Friday, traders were 75% long on the GBP/USD. On Monday, only 70% of open position volume was in longs.
Traders had taken profit from the recent surge.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 51% of orders were set to sell.