On Monday, the GBP/USD began a surge that was caused by meeting the historical low level at 1.2020.
By the middle of London's trading session the rate was aiming at a resistance cluster at 1.2090.
US and UK CPI and Retail Sales
During this week there are five scheduled government macroeconomic data releases, which might cause sudden moves in the GBP/USD.
On Tuesday morning, the UK Average Earnings Index will be published at 08:30 GMT. The data release has caused moves from 10.2 to 26.5 pips since March.
On the same day, at 12:30 GMT the US CPI is set to be published. The event has caused moves from 14.8 to 23 base points on the GBP/USD charts.
On Wednesday, the UK Consumer Price Index is set to be published at 08:30 GMT. The event has caused moves from 13.6 to 23.1 pips.
On Thursday, UK Retail Sales will be published at 08:30 GMT. Since February the event has caused moves from 11.5 to 24.5 base points.
Later in the day, at 12:30 GMT, the US Retail Sales will be published. The GBP/USD has moved from 11.3 to 28.9 pips since April.
GBP/USD short-term review
The GBP/USD exchange rate has renewed the 2018/2019 minimum, located at the 1.2021 mark. During today's morning, the rate reversed north.From a theoretical point of view, the currency pair could reach the upper boundary of the short-term descending channel located circa 1.2085 soon. If the given channel holds, it is likely, that a reversal south would follow. On the other hand, the rate could consolidate at the 1.2060 level within the following trading hours.
It is unlikely, that bulls could prevail in the market, and the British Pound could exceed the 1.2090/1.2138 range due to the resistance cluster formed by a combination of the 55-, 100– and 200-hour SMAs, as well the weekly PP.
Hourly Chart
A review of the daily candle chart has revealed that the rate has been in a smaller scale descending channel pattern that represents the rate's sharper decline, which began at the start of May.
The pattern's lower trend line is strengthening the support of the weekly S1 at 1.2038.
Daily chart
Read More: Technical Analysis
Traders remain long
During Monday's London trading session, 73% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral as 53% of orders were set to sell and 47% were to buy.
The orders previously were 64% bullish.
Meanwhile, trader set up pending orders in the 100-pip range were neutral as 53% of orders were set to sell and 47% were to buy.
The orders previously were 64% bullish.