The GBP/USD started the week by trading near the resistance of a monthly pivot at 1.2925. Meanwhile, the currency exchange rate had no technical support as low as the 1.2865 level.
Although, by the middle of the day's trading session it was spotted that the 1.2900 level was providing a psychological support to the currency exchange rate.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the statement said.
Busy week for the US and the UK
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.However, take into account that on Tuesday the heads of Bank of England and the US Federal Reserve will speak publicly. UK's Governor Carney will speak at 13:00 GMT and the head of the Federal Reserve Jerome Powell is set to speak at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
GBP/USD short term review
The GBP/USD pair is bouncing off resistance levels, which create a resistance cluster from the 1.2940 to 1.2950 levels. Meanwhile, the pair had no technical support as low as the 1.2860 mark.In general, from a technical perspective the rate is expected to continue its decline in the borders of a descending channel pattern. Namely, it should reach for the 62.30% Fibonacci retracement level at 1.2864.
On the other hand another fundamental announcement about the Brexit talks might immediately change the situation by causing another bounce upwards or sudden drop down.
Hourly Chart
On the daily, one can see that the 100-day SMA at 1.2900 was pierced during the Bank of England's rate announcement. It reveals that the support of the SMA cannot stop a fundamental move.
Meanwhile, note that the 55-day SMA was approaching the currency exchange rate from the bottom at the 1.2810 level. If the pair continues to decline, the 55-SMA and the weekly S1 will provide support together at 1.2830
Daily chart
Meanwhile, trader set up pending orders in the 100-base point range also remained neutral. 54% of trader orders for the GBP/USD were set to sell.
Previously, the orders were set to buy in 53% of cases.
The only change from Friday was that instead of having set up almost neutral buy orders traders had shifted the orders to the sell side.