The surge of the GBP/USD currency exchange rate has reached the 1.2700 level, which provided resistance.
Since early Monday morning, the rate had gained more than 1.50%.
Economic Calendar
There are only couple of events that could affect the GBP/USD rate.
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the UK Retail Sales data will be issued at 6:00 GMT. On the same day, Markit is going to publish PMIs survey results for the UK and the US.
GBP/USD short-term review
It is likely that the currency pair could gain support from the weekly R1 at 1.2664 and extend gains in the short run. In this case the pair could try to surpass the weekly R2 at 1.2758.Meanwhile, note that the exchange rate would have to exceed the monthly R1 at 1.2727. If the given level holds, it is likely that the rate could trade sideways in the nearest future.
Hourly Chart
On the daily candle chart, the rate faces the resistance of the 200-day simple moving average, which strengthens the 1.2700 level.
Daily chart
Read More: Technical Analysis
Traders remain long
Since Friday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 52% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 52% of pending orders were set to buy the GBP/USD.