The GBP/USD has continued to trade above the 1.3000 level despite the descending channel pattern, which was expected to guide the rate down.
On Monday, the pair's short term charts were reviewed.
The British Pound depreciated against the US Dollar, following the UK GDP data release on Friday at 08:30 GMT. The GBP/USD exchange currency rate lost 17 pips or 0.13% right after the release. The British Pound continued trading at the 1.3014 level against the Greenback.
Office for National Statistics released the UK GDP data, which came out worse-than-expected of negative 0.1% compared with forecast 0.0%. Note, that the UK Manufacturing Production data was released at the same time.
Despite the monthly GDP data release, which came out worse-than-expected, the UK economy is robust, as the Manufacturing Production jumped to 0.9%, and the quarterly GDP increased to 0.5%.
UK Average Earnings in focus for GBP/USD
During this week there will be a couple of macroeconomic events, which are notable enough to impact currency exchange rates.On Tuesday morning, the UK Average Earnings Index will be published at 08:30 GMT. This event is the second to the Bank of England rate announcement. Historically the event has caused moves from ten to 24 base points on the GBP/USD.
On Wednesday, Aussie traders have to watch out for the Australian Wage Price Index publication at 01:30 GMT. It is the Australian equivalent of the UK Average Earnings Index.
During the same day, at 06:00 GMT and at 09:00 GMT GDP data will be published in the European Union. Namely, at 06:00 GMT watch the German Preliminary GDP release and at 09:00 GMT the flash EU GDP will be out.
These data sets are not the ones that usually cause big moves. However, during the recent months we have seen changes in that. The EU data has resumed to cause moves on the EUR pairs.
Also on Wednesday, the Canadian CPI and US Retail Sales will be published at 12:30 GMT. The CPI caused moves of 23 to 61 pips since December on USD/CAD. Meanwhile, the US retail sales have created moves from 12 to 40 base points on EUR/USD.
Early on Thursday, at 01:30 GMT the official Australian employment change will be published. The data is expected to cause a minor impact. This event is the last notable of the week.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
GBP/USD short-term review
On Friday, the GBP/USD exchange rate traded sideways around the 1.3040 mark within the short-term ascending channel.Given that the rate is pressured by the 100-hour SMA and monthly PP at 1.3033, it is likely, that some downside potential could prevail in the market. The currency pair could decline to the 1.2980 level.
However, if the given channel holds, it is expected, that the pair could rise to its upper line located circa 1.3050. It is unlikely, that a breakout north could occur due to the resistance level formed by the 200-hour SMA and the weekly PP at 1.3047.
Hourly Chart
On the daily candle chart on Thursday the rate had pierced the support of the 100-day simple moving average at 1.3000.
Meanwhile, the daily chart reveals that the 200-day simple moving average was located at 1.2960. This level is the most close by support.
Daily chart
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 56% of orders were set to buy.