During today's morning, the GBP/USD exchange rate was testing the resistance level formed by the monthly R2 at 1.3115.
If the given resistance holds, it is likely that the British Pound could depreciate against the US Dollar in the short run.
Economic Calendar
This week, the are three scheduled events that could impact on the GBP/USD rate.
On Tuesday, December 31, the US CB Consumer Confidence will be published at 15:00 GMT.
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.
At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 30.12-03.01 Event Historical Reactions
GBP/USD short-term review
During previous trading day, the GBP/USD exchange rate advanced to the resistance level—the monthly R2 at 1.3115. During Monday morning, the rate was testing the given resistance.If the given level holds, it is likely that the currency pair could reverse south soon. In this case it is unlikely that the pair could decline lower than the 1.3006/1.3049 area due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and the monthly R1.
Otherwise, it is likely that some upside potential could continue to prevail in the market. In this case the exchange rate could face resistance of the weekly R1 and the Fibo 50.00%, located at 1.3170 and 1.3196 respectively.
Hourly Chart
On the daily candle chart, the rate's decline has broken the large scale channel up pattern. Due to that reason the closest by support on the daily chart was the 55-day simple moving average at the 1.2950 level.
Daily chart
Read More: Technical Analysis
Traders short the decline
On Monday, 58% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 86% of orders were to sell and 14% were buy orders.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 86% of orders were to sell and 14% were buy orders.