On Monday, the GBP/USD was being kept up by the technical support of the 55-hour simple moving average near the 1.3150 level.
If the SMA would manage to continue to push the rate up, the pair should eventually reach the 1.3200 level, where a 50.00% Fibonacci retracement level was located at.
The Bureau of Labor Statistics released the US Non-Farm Employment Change data, which came out better-than-expected of 266K compared with the forecast of 181K.
According to the official release: "Notable job gains occurred in health care and in professional and technical services. Employment rose in manufacturing, reflecting the return of workers from a strike."
Economic Calendar
This week there are a couple of events that could impact the rate.On Tuesday, at 09:30 GMT the UK GDP and Manufacturing Production data might cause a move. Since July, this event has created moves from 9.2 to 39.2 pips.
On Wednesday, at 13:30 GMT the US CPI and Core CPI are scheduled to be published. Since July this event has caused moves from 8.2 to 23.0 pips.
On the same day, the US Federal Reserve would announce its interest rate at 19:00 GMT. The event has created moves from 21.3 to 53.8 pips.
The week is set to end with the US Retail Sales data sets on Friday at 13:30 GMT. A move from 10.5 to 87.4 pips can be expected.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 09.12-13.12 Event Historical Reactions
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate tried to surpass the 1.3150 level. During Monday morning, the rate was trading near the given level.Note that the currency pair is supported by the 55-hour moving average, currently located at 1.3145. Thus, it is likely that some upside potential could prevail. In this case the pair would have to surpass the Fibo 50.00% at 1.3196.
If the given resistance and support levels hold, the British Pound could trade sideways against the US Dollar in the short run. Also, it is unlikely that bears could prevail, and the pair could drop lower than the monthly R1 at 1.3028.
Hourly Chart
On the daily candle chart, the rate continues to surge in the borders of a long term channel up pattern. The resistance line of the pattern was located at the 1.3600 level.
Daily chart
Read More: Technical Analysis
Large short sentiment
On Monday, 75% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 66% of orders were sell and 34% were to buy.
Meanwhile, trader orders were set to sell. In the 100-pip range, 66% of orders were sell and 34% were to buy.