The fundamental surge of the GBP/USD reached the resistance of the 1.2700 level, from where a decline began. By the middle of Monday's London trading hours the rate had declined down to the 1.2550 mark.
In general, the currency exchange rate was set to meet with various technical support levels near the 1.2500 level.
Economic Calendar
This week, there will be many UK macroeconomic data releases, which are expected to impact the GBP/USD through the adjustments of the GBP value.On Tuesday the UK Average Earnings Index is set to be published at 08:30 GMT. Since May 2019, the event has caused moves on the GBP/USD from 11.0 to 26.5 base points.
On Wednesday, at 08:30 GMT the UK Consumer Price Index is scheduled to be released. The event has caused moves from 13.6 to 23.1 pips.
Later in the day, at 12:30 GMT the US Retail Sales could impact the rate through the value of the USD. Namely, since May this event has caused moves on the GBP/USD from 10.5 to 28.9 base points.
On Thursday, the UK Retail Sales are set to be published at 08:30 GMT. This data release has caused adjustments of the GBP/USD rate from 11.5 to 24.5 pips.
Meanwhile, take into account that next week there will be other events, which are expected to cause reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
GBP/USD short-term review
On Monday, the GBP/USD rate was heading to the support of the weekly pivot point at 1.2520, which soon could be supported by the 55-hour simple moving average.If these levels fail to stop the rate's decline, the psychological support of the 1.2500 mark would be tested next. In the case of another failure to stop the decline, there would be no technical support to the rate as low as 1.2365
Meanwhile, take into account that the recent moves were caused by Brexit fundamentals. It is of the utmost importance currently to monitor the announcements made by both the UK and EU leaders in regards to Brexit.
Hourly Chart
On the daily candle chart, the surge was stopped by the 200-day simple moving average at the 1.2715 level. The SMA is expected to continue to provide resistance.
Meanwhile, the 100-day SMA was providing support at the 1.2413 level. It could pause a fall of the rate in the case of the 1.2500 level failing to stop a decline.
Daily chart
Read More: Technical Analysis
Swiss traders profited
On Monday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 56% of volume was long. Traders have taken profits from the long positions.
Meanwhile, trader orders were mostly bullish. In the 100-pip range, 85% of orders were to buy and 15% were to sell.
Previously, the orders were 53% to sell.
On Friday, 56% of volume was long. Traders have taken profits from the long positions.
Meanwhile, trader orders were mostly bullish. In the 100-pip range, 85% of orders were to buy and 15% were to sell.
Previously, the orders were 53% to sell.