On Monday, the GBP/USD started the week's trading by being impacted by the hourly simple moving averages. In addition, the rate respected the resistance of the 1.3720 round exchange rate level.
At mid-day, the near term future was dependant on whether or not the support of the 100-hour simple moving average pushes the rate up.
Economic Calendar
Most of notable events are expected from the United States. Namely, on Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement at 19:00 GMT.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
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
The GBP/USD exchange rate continues to follow the rising wedge pattern.From a theoretical perspective, it is likely that the currency pair could re-test the lower pattern line circa 1.3600. If the given pattern holds, a reversal north could occur.
However, note that the exchange rate could gain support from the 100-hour SMA at 1.3680 or the 200-hour SMA and the weekly PP near 1.3650. Thus, the rate could re-test the upper pattern line. If the predetermined pattern holds, a breakout north could occur.
Hourly Chart
On the daily candle chart, it can be observed that the 2021 high level zone was pierced on Thursday. It indicates that new high levels can be reached by the GBP against the US Dollar.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.
Since Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.