The GBP/USD found enough support in the September low level zone to start a recovery. The recovery first reached the resistance of the 1.3500 mark, which kept the rate down until the middle of Monday's GMT trading hours.
During the afternoon, the GBP/USD was surging sharply. By 15:30 GMT, the rate was testing the resistance of the 100-hour simple moving average at 1.3568.
Economic Calendar
On Tuesday, the US Producer Price Index and Core Producer Price Index at 13:30 GMT could cause minor USD volatility. The GBP/USD has moved from 8.4 to 25.8 on the release.
On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price Index will be released. In addition, the weekly US Unemployment Claims are set to be out at the same time. If the data sets combined beat or disappoint forecasts, a notable move in all USD assets might occur.
The CPI has caused moves from 23.5 to 58.0 pips since June. Meanwhile, the Unemployment Claims have created moves from 11.7 to 19.9 base points.
On Thursday, the UK Preliminary Quarterly GDP data might cause a move from 8.1 to 16.0 pips, as it has done so since August 2020.
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
A passing of the resistance of the 100-hour simple moving average could result in the rate testing the 1.3600 level and the 1.3605/1.3610 zone, which managed to impact the GBP/USD at the start of November. Above the mentioned resistance levels, the pair might encounter resistance at the 200-hour simple moving average at 1.3644.Meanwhile, a bounce off from the resistance of the 100-hour SMA could look for support in the weekly simple pivot point at 1.3543. Below the pivot point, the rate might find support in the 1.3500 mark and the 50-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support zone that was located below the 1.3600 mark. Next target on the chart is the September low level at 1.3412.Daily chart
Read More: Technical Analysis
Traders set up sell orders
Since Friday, traders were neutral, as 52% 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 75% to sell.
On Friday, orders were 89% to buy.
Since Friday, traders were neutral, as 52% 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 75% to sell.
On Friday, orders were 89% to buy.