Since the middle of Friday's GMT trading hours, the GBP/USD has trade below the technical resistance of the 200-hour SMA.
Moreover, on Monday, the SMA was being strengthened by the weekly pivot point at 1.3074.
Economic Calendar
The week ahead is going to be relatively calm on the economic calendar. Most of the events, that could impact the markets, are from the US.
On Tuesday, the US Core PPI and PPI data are going to be released at 12:30 GMT.
On Wednesday, the UK GDP data, as well the Manufacturing Production data is set to be issued at 6:00 GMT. Later that day, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
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 declined to the 1.3050 level. During Monday morning, the rate was testing the resistance formed by the 200-hour SMA and the weekly PP at 1.3075.It is likely that the currency pair could face the resistance provided by the 55– and 100-hour SMAs near 1.3100. Thus, it is likely that some downside potential could prevail in the market, and the pair could target the weekly S1 at 1.2962.
Meanwhile, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the weekly R1 located at the 1.3166 mark.
Hourly Chart
On the daily candle chart, the rate is consolidating in the 1.3100 area.
In the meantime, it is likely that the rate is in the overbought area, as it is trading far above the 55-, 100- and 200-day moving averages.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 52% of pending orders were set to buy the GBP/USD pair.
The orders were 76% bullish on Friday.
On Monday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 52% of pending orders were set to buy the GBP/USD pair.
The orders were 76% bullish on Friday.