At mid-day on Monday, the GBP/USD broke the medium channel down pattern of the hourly candle chart. The event signalled that the currency exchange rate could continue to surge.
In theory, a surge could reach for the 1.2600 level, as there was no technical resistance as high as 1.2593.
Economic Calendar
Macroeconomic data releases are set to start on Monday at 14:00 GMT. The US ISM Non-Manufacturing PMI is scheduled to be released. In June, it caused a 29.1 pip move on the GBP/USD.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
GBP/USD short-term review
As the rate has passed the resistance of the medium channel down pattern, it has no technical resistance as high as the weekly R1 simple pivot point at 1.2593. Due to that reason it is expected that the pair would continue to surge.However, last week, the rate bounced off the 1.2525 level. It could be possible that this level keeps the rate down once again.
Hourly Chart
On the daily candle chart, the rate has the support of the 55 and 100-day simple moving averages at 1.2422 and 1.2454. These levels could bolster an upcoming surge.
Daily chart
Read More: Technical Analysis
Traders are long
On Monday, 60% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate, 70% of pending orders were set to sell the GBP/USD.
It appeared on Monday that traders were long during the ongoing surge, but had close by take profits and stop losses. Namely, the trade set ups were short term.
Meanwhile, in the 100-pip range around the rate, 70% of pending orders were set to sell the GBP/USD.
It appeared on Monday that traders were long during the ongoing surge, but had close by take profits and stop losses. Namely, the trade set ups were short term.