The GBP/USD started the week with a sharp surge, which broke various resistance levels. By the middle of Monday's European trading hours, the pair had reached above the 1.3840 level.
In the meantime, the rate's recent surge revealed a channel up pattern. The pattern captures the rate's surge, which has been occurring since March 25. The channel's borders could provide both resistance and support.
Economic Calendar
The week will start on Wednesday with the UK Final GDP at 07:00 GMT. The GBP/USD has moved from 9.8 to 27.6 pips due to this release since December 2019.
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released. This event has caused GBP/USD moves from 8.0 to 17.1 pips since November.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled. The rate has moved from 12.7 to 16.7 pips on the announcement.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released. Combined they have caused moves from 19.6 to 55.0 pips on the GBP/USD charts.
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
In regards to the near term future, the pair was highly likely going to extend the surge and eventually reach for the resistance of the weekly R1 simple pivot point at 1.3892.However, the rate could also consolidate by trading sideways above the support of the 1.3810/1.3820 zone and the 200-hour simple moving average.
Hourly Chart
On the daily candle chart, it appeared on Friday that after being slightly pierced, the support of the large scale channel had held. The pattern captures the rate's large scale recovery, which has occurred since the initial coronavirus drop in March 2020.
Most recently, on Monday, the rate passed the resistance of the 1.3800 mark and the 55-day simple moving average.
In addition, note the approaching support of the 100-day simple moving average near 1.3630.
Daily chart
Read More: Technical Analysis
Traders go short
On Monday, traders went short, as 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Previously, since Wednesday, traders were 51% long. Traders were neutral throughout most of the week.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to sell the GBP/USD pair.
The orders were 70% to sell on Friday.
On Monday, traders went short, as 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Previously, since Wednesday, traders were 51% long. Traders were neutral throughout most of the week.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to sell the GBP/USD pair.
The orders were 70% to sell on Friday.