On Tuesday, the GBP/USD found support in the trend line, which connects the December 8 and 9 low levels. By the middle of the day, the rate had reached and pierced the resistance of the 200-hour simple moving average and the weekly simple pivot point at 1.3245.
Economic Calendar
On Tuesday, at 13:30 GMT, the US Producers Price Index and Core Producers Price Index are expected to cause minor moves on all USD pairs.
On Wednesday, at 13:30 GMT, the US Retail Sales and Core Retail Sales are set to impact the USD.
Top event of the month is scheduled for 19:00 GMT on Wednesday. At that time, the US Federal Funds Rate, FOMC Statement and Economic Projections are going to be published. The USD is expected to be highly volatile.
At 12:00 GMT on Thursday, the Bank of England will publish its Monetary Policy Summary together with the Official Bank Rate and Asset Purchase Facility. Namely, the future of the supply of the GBP is set to be released.
The week's notable events will end with the weekly US Unemployment Claims at 13:30 GMT and the US PMIs at 14:45 GMT. These events have rarely caused notable USD moves.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
A continuation of the surge of the rate would most likely reach the resistance of the recent high levels at 1.3277/1.3289. A move above this zone could find resistance in the 1.3300 mark, before aiming at the weekly R1 simple pivot point at 1.3324.Meanwhile, a decline of the rate could look for support in the 50 and 100-hour simple moving averages near 1.3230 and 1.3220. Below the SMAs, the low level trend line and the weekly S1 simple pivot point might stop the pair at 1.3196.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern. Note the lower trend line of the pattern near 1.3150. Most recently, the currency pair bounced off the trend line.Daily chart
Read More: Technical Analysis
Traders are long
On Tuesday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP against USD.
On Tuesday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP against USD.