By the middle of Monday's GMT trading hours, the pair had reached the 1.2880 level. Its surge was stopped by the resistance of the daily candle chart's channel up pattern's upper trend line.
In theory, the rate should consolidate by trading sideways or declining.
Economic Calendar
Notable macroeconomic events are set to start with the biggest and most important of them all, the Federal Reserve is scheduled to make a Rate Statement and Rate Announcement on Wednesday, at 18:00 GMT.
On Thursday, pay attention to the US Advance GDP and the weekly US Unemployment Claims that should be published at 12:30 GMT.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
During previous trading session, the GBP/USD exchange rate traded along the upper line of the medium-term ascending channel. During Monday morning, the rate breached the given channel north.From the one hand, it is likely that some upside potential could prevail in the market. Note that the currency pair would have to exceed the weekly R1 at 1.2893.
If the predetermined resistance holds, it is likely that a reversal south could occur. In this case the pair could gain support from the 55– and 100-hour SMAs, as well the weekly PP and the monthly R1 in the 1.2706/1.2765 area.
Hourly Chart
On the daily candle chart, the rate is testing the resistance line of the channel up pattern, which has guided the pair since the end of June.
Previously, it was not expected that the trend line would be reached so soon. Instead, the rate was forecast to trade in the middle of the pattern.
Daily chart
Read More: Technical Analysis
Traders go short
On Monday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, since Thursday, in the 100-pip range around the rate the orders were neutral, as 53% of pending orders were set to buy the GBP/USD.
The orders changed on Monday, as 59% were to buy the pair.
On Monday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, since Thursday, in the 100-pip range around the rate the orders were neutral, as 53% of pending orders were set to buy the GBP/USD.
The orders changed on Monday, as 59% were to buy the pair.