The GBP/USD rate retreated on Monday morning to the support of the lower trend line of a channel up pattern, which has guided the pair since October 12. Future forecasts were based upon whether or not the support holds.
Economic Calendar
GBP/USD short-term review
In the case of a passing of the support of the channel up pattern, the GBP/USD might find support in the 55-hour simple moving average near 1.3712. Below the 55-hour SMA, the weekly simple pivot point at 1.3700 might act as a support level. Although, the 1.3700 has been providing both support and resistance on its own.However, a potential surge of the rate might encounter resistance in the Friday's high levels at 1.3765 and 1.3775. Above the high levels, the weekly R1 at 1.3830 might keep the rate down.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has passed the resistance of the 55-day simple moving average near 1.3735. Meanwhile, the 100 and 200-day SMAs were providing resistance at 1.3818 and 1.3846.Daily chart
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Traders are short
On Monday, traders were short, as 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell.
On Monday, traders were short, as 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell.