During Monday morning, the GBP/USD exchange rate was trading between the 55- and 200-hour moving averages.
If the given moving averages hold, it is likely that the British Pound could consolidate against the US Dollar in the short term.
Economic Calendar
During the last week of January, most attention will be paid to the US Federal Reserve and the Bank of England. Both central banks have scheduled their rate announcements for this week.
Before that, on Tuesday, minor spike in volatility could occur due to the US Durable Goods Orders Release at 13:30 GMT. The event has caused GBP/USD moves from 6.2 to 16.8 pips.
The US will be the first to publish their rate. The FED's event is scheduled for 19:00 GMT on Wednesday. This time, no rate cut is expected. GBP/USD has moves 17.0 and 21.3 pips during the times that no rate cut has occurred.
The Bank of England will announce their rate decision on Thursday, at 12:00 GMT. The announcement, without any rate changes, since June 2019 has caused GBP/USD moves from 21.3 to 83.6 pips.
Afterwards, on the same day, the US Advance GDP will be released at 13:30 GMT. A move from 11.5 to 36.1 pips can be expected.
The week's event historical data tables have been published. Click on the link below to read the article.
Read More: 27.01-31.01 Event Historical Reactions
GBP/USD short-term review
During last trading session, the GBP/USD exchange rate failed to breach the medium-term ascending channel. During Monday morning, the rate was testing support provided by the 200-hour SMA at 1.3061.Note that the currency pair is pressured by the 55-hour moving average. Thus, it is likely that some downside potential could prevail, and the pair could re-test the lower channel line located circa 1.3020. If the given channel does not hold, the pair could target the weekly S1 at 1.2968.
However, if the given support holds, it is likely that the British Pound could consolidate against the US Dollar in the short run. Also, it is unlikely that bulls could prevail, and the rate could exceed the psychological level at 1.3140.
Hourly Chart
On the daily candle chart, the rate is being supported by the 55-day simple moving average, which on Friday was located at the 1.3030 level.
Daily chart
Read More: Technical Analysis
Traders are relatively neutral
On Monday, 47% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 57% of orders were to sell and 43% were buy orders.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 57% of orders were to sell and 43% were buy orders.