The GBP/USD reached the 1.3200 mark on Monday morning. However, immediately after touching this high level, the rate retraced down to the support of the 55-hour simple moving average.
The near term future forecasts were based upon whether or not the 55-hour SMA manages to push the pair up.
Economic Calendar
On Thursday, at 07:00 GMT pay attention to the UK Preliminary GDP, which could cause a minor increase of volatility on the GBP pairs. The GBP/USD rate has moved from 12.8 to 39.2 pips on the announcement.
On the same day, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 29 pips on the announcement.
On Friday, the US Producer Price Index are scheduled to be released at 13:30 GMT. The GBP/USD has moved from 11.1 to 36.2 pips during the release of the PPI.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that some upside potential could prevail in the market, as the currency pair could gain support from the 55-hour moving average near 1.3120. The rate could face the resistance level—the weekly R1, located at 1.3270.Meanwhile, it is unlikely that bears could prevail in the market, and the exchange rate could decline below the 1.2950/1.3000 range due to the support formed by the 200-hour SMA and the weekly S1.
Hourly Chart
On the daily candle chart, the rate has pierced the October high level of 1.3180.
In the meantime, the rate had additional support on the chart at the 1.3000 level. At that level, the 55-day simple moving average was located at.
Daily chart
Read More: Technical Analysis
Traders remain neutral
On Friday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the sentiment was 52% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy the GBP/USD pair.
On Friday, 60% of orders were to sell.
On Friday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the sentiment was 52% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy the GBP/USD pair.
On Friday, 60% of orders were to sell.