- The Swiss market is neutral on Monday
- Pending orders in the 100-pip range are set to sell in 73% of cases
- Each day of the week will have notable macroeconomic data releases
Due to fundamental events during the weekend, the GBP/USD started Monday at 1.31. Although, by the middle of the day's trading session the rate had reached to resistance levels at 1.3160 mark, where an important level is forming.
The US dollar strengthened against the British Pound, following the UK GDP and Manufacturing Production data release. The GBP/USD currency pair lost 8 pips, or 0.06%. The British pound kept going downwards after the data release to continue trading at the 1.3159 area.
The Office for National Statistics released Gross Domestic Product data that came lower-than-expected of 0.0% with the forecasted 0.1%. Moreover, UK Manufacturing Production data came out together with the UK GDP data release with the data lower-than-expected of negative 0.2% compared with the forecasted 0.1%.
Rob Kent-Smith, Head of GDP at the Office for National Statistics said: "The economy continued to rebound strongly after a weak spring, with retail, food and drink production and house building all performing particularly well during the hot summer months. However, long-term growth continues to lag behind its historical trend."
Week starts with a data release
Usually Monday's are empty on the economic calendar. Today is an exception. The US Retail Sales data sets will be published at 12:30 GMT.
The data release cover will begin on the webinar platform at 12:20 GMT.
Meanwhile, macroeconomic data release traders will also be on alert on Tuesday morning. At 08:30 GMT the UK Average Earnings index and other UK's employment data sets will be published.
GBP/USD short term review
The GBP/USD was standing just below the various resistance levels that are located from the 1.3160 mark up to the 1.3190 level. Most likely the resistance cluster will hold its ground and force the currency exchange rate into a decline.However, watch the currency exchange rate during fundamental data releases. A macroeconomic data release can provide the needed push above the resistance cluster.
Hourly Chart
The decline, which was previously speculated by watching the daily chart, has occurred. The rate has bounced off the 1.3250 level.
Moreover, the event has provided the opportunity to adjust properly the location of the trend line of the massive scale most dominant descending channel. Namely, the pattern's upper trend line was located at the 1.3250 level.
Daily chart
On Monday, trader open positions were neutral.
Meanwhile, in the 100-pip range around the currency exchange rate 73% of trader set up pending orders are set to sell.
Previously, 57% of orders were to buy in case the pair breaks the resistance of the dominant pattern.