On Monday morning, the GBP/USD passed above the resistance of the 1.3410/1.3430 zone. However, a follow up surge did not occur. Instead, the pair started to trade in the zone.
Meanwhile, support was being provided by the 50-hour SMA and the 1.3400 level. Resistance was provided by the 100-hour SMA at 1.3450 and the weekly simple pivot point at 1.3462.
Economic Calendar
On Tuesday, at 13:30 GMT, the US Retail Sales and US Core Retail Sales are bound to impact the value of the US Dollar. The rate has moved 10.4 to 29.6 pips on the release since June 15.
On Wednesday, at 07:00 GMT, the UK Consumer Price Index will be published. Expect all GBP pairs to react to this event. The event has caused GBP/USD moves from 12.0 to 21.8 base points since June.
On Thursday, note that a minor USD move could be caused by the weekly US Unemployment Claims. The GBP/USD moved 11.7 to 31.6 pips on the release. However, the 31.6 move was created by the simultaneous release of the US CPI. Without the most recent release, the range is 11.7 to 19.9 points.
On Friday, at 07:00 GMT, the UK Retail Sales data will be published. The rate has moved 11.2 to 13.6 pips on the release.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
If the GBP/USD passes below the support of the 50-hour SMA and the 1.3400 mark, a potential decline would look for support in the last week's low level zone at 1.3354/1.3365. Below the zone, note the weekly S1 simple pivot point at 1.3316.However, a surge of the pair might test the levels at 1.3450/1.3462. Above this zone, the 200-hour SMA at 1.3504 and the 1.3500 mark would most likely provide resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed below the September low level. The pair has not been this low since December 2020.Daily chart
Read More: Technical Analysis
Traders are long
Since Friday, traders were bullish, as 61% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 51% to sell the GBP against USD.
The orders were 68% to buy on Friday.
Since Friday, traders were bullish, as 61% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 51% to sell the GBP against USD.
The orders were 68% to buy on Friday.