On Monday, after touching the 1.3240 level, the GBP/USD currency exchange rate declined to the support of the 55-hour SMA.
Meanwhile, the rate was being approached by the support of the 200-hour simple moving average. Due to that reason the forecast of a surge was favoured.
Economic Calendar
Notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Wednesday, the UK Consumer Price Indices could cause an increase of volatility. However, it is highly unlikely, as it has occurred quite rarely during the recent past.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
The week will end with retail sales data from the UK at 07:00 GMT
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 55– and 200-hour moving averages in the 1.3160 area and trade upwards in the short term. In this case the pair could target the 1.3280 mark.Meanwhile, the exchange rate could be pushed down by the weekly PP and the 100-hour SMA near 1.3210. Thus, the rate could decline to the support level formed by the weekly S1 at 1.3102.
Hourly Chart
On the daily candle chart, on Monday, Dukascopy Analytics spotted a channel up pattern. The channel has captured the rate's recovery that has been occurring since the start of September.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 60% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 65% to buy the GBP/USD pair.
On Friday, 58% of orders were to sell.
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 60% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 65% to buy the GBP/USD pair.
On Friday, 58% of orders were to sell.