The 200-hour simple moving average provided the GBP/USD with support. The rate fluctuated above the SMA since the middle of Friday.
On Monday, the rate bounced off the SMA and surged up to the 1.3060 level, managing to pass three technical resistance levels.Economic Calendar
This week, data releases will start on Tuesday at 15:00 GMT. The US ISM Non-Manufacturing PMI will be released at that time. This event has caused moves from 8.8 to 37.8 pips on the GBP/USD.On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused moves that are not large, but still worth mentioning. For example, the GBP/USD moved 12.1 pips.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the GPB/USD has moved from 21.7 to 51.3 pips on the release.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 06.01-10.01 Event Historical Reactions
GBP/USD short-term review
During the early London trading hours, the GBP/USD broke the resistance of the 55 and 100-hour SMAs and the weekly pivot point near 1.3140.In theory, the rate should next surge to the 50.00% Fibonacci retracement level, which was located near the 1.3200 mark.
On the other hand, the rate could trade sideways to consolidate after the sharp surge of Monday morning.
Hourly Chart
On the daily candle chart, the rate has been pushed up by the support of the 55-day simple moving average. The rate had surged for five consecutive trading sessions before bouncing off the 1.3300 level.
Since Friday, it appeared that the rate was retreating back down to the SMA.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bearish. In the 100-pip range, 66% of orders were to sell and 34% were buy orders.
Meanwhile, trader orders were bearish. In the 100-pip range, 66% of orders were to sell and 34% were buy orders.