On Monday morning, the GBP/USD once again found support in the March and April low levels at 1.3670. It resulted in a surge, which passed the resistance of the 55-hour simple moving average and the resistance zone above the 1.3720 level.
In the near term future, the rate was expected to test the combined resistance of the weekly simple pivot point and the 100-hour simple moving average at 1.3766.
Economic Calendar
On Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The GBP/USD has moved from 14.8 to 35.6 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 12.0 to 26.3 pips on the release.
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 the case of the rate surging above 1.3766, the pair could encounter resistance in the 200-hour simple moving average at 1.3793 and the 1.3800 mark. Above these levels, the most close by resistance was the weekly R1 simple pivot point at 1.3861.On the other hand, if the resistance holds, the GBP/USD might decline and look for support in the 55-hour SMA and the zone above the 1.3720 level. If they fail to keep the pair up, the March and April low levels could be reached.
Hourly Chart
On the daily candle chart, the rate's decline appears to have found support in the 100-day simple moving average, which reached the rate from below on Friday.
Daily chart
Read More: Technical Analysis
Traders are neutral
Since Friday, traders were neutral, as 50% of trader open position volume on the Swiss Foreign Exchange was in short and long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to sell.
Since Friday, traders were neutral, as 50% of trader open position volume on the Swiss Foreign Exchange was in short and long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to sell.