The GBP/USD tested the resistance of the 1.2350 level on Monday, as it was expected. Moreover, the resistance was broken, and the rate touched the 1.2380 level.
On Tuesday morning, the rate had traded sideways above the 1.2340 level before beginning a surge. In theory, the rate could surge up to the weekly R1 of the simple pivot points at 1.2445.
UK GDP and Manufacturing Production
The British Pound appreciated against the US Dollar, following the UK Manufacturing Production and GDP data releases on Monday at 08:30 GMT. The GBP/USD exchange currency rate gained 13 pips or 0.10% right after the release. The Pound continued trading at the 1.2300 level against the Greenback.
The Office for National Statistics released the UK Manufacturing Production data, which came out better-than-expected of 0.3% compared with the forecast of the negative 0.3%. The UK GDP data also came out better-than expected of 0.3% compared with the forecast of 0.2%.
The Head of GDP Rob Kent-Smith commented the release: "While the largest part of the economy, services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019."
Economic Calendar
This week there are couple data releases both from the UK and the US that could move the GBP/USD exchange rate.
On Tuesday, September 10, the UK Employment data set will be published at 8:30 GMT. Previously, the release caused a sixteen-pip move.
On Wednesday, September 11, the US Producer Price Index data will be released at 12:30 GMT.
On Thursday, September 12, the US Consumer Price Index data will be published at 12:30 GMT. Last data release caused a nineteen-pip move.
On Friday, September 13, the US Retail Sales data will be published at 12:30 GMT. Last time, the GBP/USD exchange rate moved for almost 19 pips.
GBP/USD short-term review
On Tuesday morning, the GBP/USD bounced off the support of the 1.2340 level.Due to that reason the rate was expected to surge. From a technical analysis perspective, the rate should surge up to the weekly pivot point first resistance level at 1.2445.
On the other hand, the rate might wait for the support of the 55 and 100-hour simple moving averages to catch up to it. On Tuesday morning, these levels were located, respectively, at 1.2320 and 1.2286.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average. The SMA on Tuesday began to provide support to the monthly pivot point at 1.2314.
Namely, there is no longer a barrier to the pair's surge on the daily candle chart.
Daily chart
Read More: Technical Analysis
Traders remain long
On Tuesday morning, 56% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions. Traders had been long since last week.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 51% of orders were set to sell and 49% were to buy.
Previously, 64% of orders were to sell.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 51% of orders were set to sell and 49% were to buy.
Previously, 64% of orders were to sell.