The GBP/USD started the week higher and retraced back up to the 55-hour simple moving average. The same SMA, which pushed the rate down last week.
The rate was expected to be pushed down by it once again.
UK Monetary Policy
The British Pound depreciated against the US Dollar, following the UK Monetary Policy Summary release on Thursday at 12:00 GMT. The GBP/USD exchange currency rate lost 42 pips or 0.32% right after the release. The British Pound continued trading at the 1.2830 level against the US Dollar.
The Bank of England released the UK Official Bank Rate data, which came out in line with the expectations of 0.75%.
According to the official release: "The Monetary Policy Committee will, among other factors, monitor closely the responses of companies and households to Brexit developments as well as the prospects for a recovery in global growth. If global growth fails to stabilise or if Brexit uncertainties remain entrenched, monetary policy may need to reinforce the expected recovery in UK GDP growth and inflation."
Economic Calendar
This week, US and UK data is set to impact the GBP/USD currency exchange rate.On Tuesday, the UK Average Earnings Index is set to be published at 09:30 GMT. The event has caused moves from 11.0 to 26.5 pips.
On Wednesday, the UK CPI is scheduled to be released at 09:30 GMT, which has caused GBP/USD moves from 13.6 to 20.8 pips.
On the same day, at 13:30 GMT the US Consumer Price Index and Core Consumer Price Index are set to be published. The event has caused moves on the charts from 17.4 to 23.0 pips.
On Thursday, the UK Retail Sales will be published at 09:30 GMT. It has created moves from 11.5 to 15.7 base points.
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 9.3 to 14.4 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 10.5 to 87.4 pips. The last event was an anomaly created by more than one data set being released at the same time. Instead expect a move around 13.7 to 24.3 pips.
Meanwhile, the week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate re-tested the lower boundary of the short-term descending channel at 1.2770. During Monday morning, the rate was trading at the 1.2800 mark.It is unlikely that some upside potential could prevail in the market, as the currency pair is pressured by the 55–hour SMA at 1.2814. Thus, the British Pound could depreciate against the US Dollar within the given trend in the short run.
On the other hand, the exchange rate could trade sideways at the 1.2800 mark within the following trading session. Also, it is unlikely that the given resistance does not hold, and the rate could exceed the weekly PP at 1.2832.
Hourly Chart
On the daily candle chart, the rate is consolidating by trading sideways in the borders of a larger ascending channel pattern.
The consolidation is occurring in a recently spotted low angle channel down pattern, which could guide the pair until the end of November.
Daily chart
Previously, 66% of volume was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 85% of orders were to buy and 15% were to sell.
On Friday, the orders were 83% to buy.