The GBP/USD currency exchange rate's surge has encountered resistance at 1.3605/1.3610. This zone proved that it can impact the pair during the first trading sessions of November.
Economic Calendar
On Tuesday, the US Producer Price Index and Core Producer Price Index at 13:30 GMT could cause minor USD volatility. The GBP/USD has moved from 8.4 to 25.8 on the release.
On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price Index will be released. In addition, the weekly US Unemployment Claims are set to be out at the same time. If the data sets combined beat or disappoint forecasts, a notable move in all USD assets might occur.
The CPI has caused moves from 23.5 to 58.0 pips since June. Meanwhile, the Unemployment Claims have created moves from 11.7 to 19.9 base points.
On Thursday, the UK Preliminary Quarterly GDP data might cause a move from 8.1 to 16.0 pips, as it has done so since August 2020.
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
If the resistance zone of 1.3605/1.3610 holds, a decline of the rate might occur. A potential move down could find support in the 100-hour simple moving average at 1.3555. Below the 100-hour SMA, the weekly simple pivot point at 1.3543 might act as support. In the case of the pivot point failing, the 50-hour SMA near 1.3525 might stop a decline.On the other hand, a move above the resistance zone would almost immediately encounter the resistance of the 200-hour simple moving average at 1.3626. Above the SMA, the weekly R1 simple pivot point at 1.3661 might provide resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support zone that was located below the 1.3600 mark. Next target on the chart is the September low level at 1.3412.Daily chart
Read More: Technical Analysis
Traders are neutral
Since Friday, traders were neutral, as 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Tuesday, the situation changed, as 51% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to sell.
Since Friday, traders were neutral, as 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Tuesday, the situation changed, as 51% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to sell.