On Tuesday morning the GBP/USD was testing the resistance of the 1.3000 level.
It was expected that the rate will fail to surge, as additional technical resistance was about to be provided by the 100-hour simple moving average.
The British Pound appreciated against the US Dollar, following the UK Retail Sales data release on Thursday at 8:30 GMT. The GBP/USD exchange currency rate gained 16 pips or 0.13% right after the release. The British Pound continued trading at the 1.3010 level against the US Dollar.
Office for National Statistics released the UK Retail Sales data that came out better-than-expected of 1.1% compared with forecast –0.3%.
According to analysts, the unexpected increase in the UK retail sales was driven by Brexit uncertainty. It is likely, that consumers are undisturbed by the UK departure from the EU bloc. Consumers have supported the UK economic growth since the referendum.
Canadian Rate and US data
During this week there will be a couple of macroeconomic events to watch, avoid or trade.First, the Canadian central bank will publish their interest rate on Wednesday at 14:00 GMT.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT. This event can cause a move of up to 20 base points.
The data will end on Friday, as at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the USD.
Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
GBP/USD short term review
On Tuesday morning, the GBP/USD was testing the resistance of the 1.3000 level. Previously, the rate managed to pass the resistance of the 55-hour SMA, which pushed the rate down throughout last week.The rate is expected to decline, as soon as the 100-hour SMA approaches it from the upside.
On the other hand, the pair might break the SMA's resistance and surge up to the weekly pivot point at the 1.3034 level.
Hourly Chart
On the daily chart the large scale ascending pattern was broken on Wednesday.
Note the resistance line, which managed to eventually force the currency exchange rate through the lower trend line of the large scale ascending pattern.
In regards to the future, it could be seen that on the daily candle chart the 100 and 200-day simple moving averages were providing support at the 1.2950 level.
The 200-day SMA managed to stop the currency exchange rate from declining at the end of March and start of April.
Daily chart
Meanwhile, the pending orders in the 100-pip range were bearish. 55% of the orders were set to sell.