Since late Friday trading hours, the GBP/USD has been testing support levels from 1.3080 to 1.3090.
In regards to the near term future, the scenarios were based upon what would happen at the technical support cluster.
Economic Calendar
Despite the week having high impact events on the calendar, Dukascopy Analytics do not expect notable macroeconomic data caused moves.
First of all, note that the FOMC Meeting Minutes on Wednesday will not have a rate announcement and a statement. The Meeting Minutes on their own were excluded from the historical data analysis after for a half-year period it caused only four pip moves on the EUR/USD. Equivalent minor moves occurred on other pairs.
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate touched the 1.3140 level. During Monday morning, the rate was testing the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP circa 1.3075.If the given support holds, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could face the resistance level formed by the weekly R1 at 1.3152.
Otherwise, it is likely that some downside potential could prevail in the market in the nearest future, and the exchange rate could re-test the lower line of the medium-term ascending channel circa 1.3030.
Hourly Chart
On the daily candle chart, the rate is consolidating in the 1.3100 area. In addition, a channel up pattern was spotted and added to the chart on Friday. The rate is consolidating in its borders.
In the meantime, it is likely that the rate is in the overbought zone, as it is trading far above the 55-, 100- and 200-day moving averages. This signals that the rate needs to trade sideways or retrace back down.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 54% to buy the GBP/USD pair.
The orders were neutral on Friday.
Since Friday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 54% to buy the GBP/USD pair.
The orders were neutral on Friday.