Even though it is convention to use gauge pressure in the calculation of hydraulic head, it is more correct to use absolute pressure (gauge pressure + atmospheric pressure), since this is truly what drives groundwater flow. Often detailed observations of barometric pressure are not available at each well through time, so this is often disregarded (contributing to large errors at locations where hydraulic gradients are low or the angle between wells is acute.)
The effects of changes in atmospheric pressure upon water levels observed in wells has been known for many years. The effect is a direct one, an increase in atmospheric pressure is an increase in load on the water in the aquifer, which increases the depth to water (lowers the water level elevation). Pascal first qualitatively observed these effects in the 17th century, and they were more rigorously described by the soil physicist Edgar Buckingham (working for the United States Department of Agriculture (USDA)) using air flow models in 1907.