The GBP/USD exchange rate failed to surpass the 1.2880 level. The rate jumped to the resistance provided by the 55-hour SMA and the Fibonacci 38.20% retracement at 1.2918.
If the given resistance holds, the rate is expected to trade downwards within the following trading session.
Economic Calendar
This week's data is available. Click on the link below to see the historical data tables with the reactions to the events.On Tuesday, at 09:30 GMT, the UK Manufacturing Production, Monthly GDP and the Preliminary Quarterly GDP are set to be published.
Usually, the Monthly GDP and Manufacturing Production are released together. A move from 11.9 to 29.8 has been caused by this event since September.
The quarterly GDP appears once every three months and causes a larger reaction than the monthly data. This release has caused moves from 16.5 to 39.2 pips since November 2018.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. The GBP/USD has moved from 8.2 to 19.4 pips because of the release.
On Friday, the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the pair since September 2019 from 10.5 to 87.4 base points.
Note that the 87.4 pips most likely was caused by another aspect. The second largest move has been 15.5 pips.
Read More: 10.02-14.02 Event Historical Reactions
GBP/USD short-term review
During previous trading session, the GBP/USD exchange rate tried to decline below the 1.2900 level. During Monday morning, the rate was testing the Fibo 38.20% at 1.2918.Note that the currency pair is pressured by the 55-hour SMA, currently located at 1.2930. Thus, some downside potential could prevail in the market, and the pair could target the 1.2850 level.
On the other hand, the British Pound could consolidate against the Greenback in the short run. Also, it is unlikely that bulls could prevail, and the rate exceed the weekly PP at 1.2986.
Hourly Chart
On the daily candle chart, the rate's decline could look for support in the 100-day SMA, which on Monday was located near 1.2890.
Daily chart
Read More: Technical Analysis
Traders are neutral on GBP/USD
On Monday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 53% of orders were to sell and 47% were buy orders.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 53% of orders were to sell and 47% were buy orders.