On Tuesday, the GBP/USD was approached by the additional support of the 100-hour simple moving average. The SMA strengthened the support of the 1.3140 level and pushed the rate higher.
By the middle of the day's London trading hours, the rate had approached the resistance of the 1.3180 level, which stopped a surge on Monday.
Economic Calendar
This week there are a couple of events that could impact the rate.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
Note that the currency pair is supported by the 55– and 100-hour SMAs, currently located circa 1.3140. Thus, it is likely that some upside potential could prevail in the market. In this case the pair would have to surpass the Fibo 50.00% at 1.3196.If the given resistance holds, it is likely that the British Pound could continue to consolidate against the US Dollar in the nearest future. Also, it is unlikely that bears could prevail, and the rate could drop lower than the weekly PP at 1.3068.
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
Short sentiment remains unchanged
Since 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, 62% of orders were sell and 38% were to buy.
Previously, 66% of orders were to sell.
Meanwhile, trader orders were set to sell. In the 100-pip range, 62% of orders were sell and 38% were to buy.
Previously, 66% of orders were to sell.