The GBP/USD started the week by retreating below the 55 and 200-hour simple moving averages that were located near the 1.2475 level.
These two SMAs were expected to push the rate down into the support of the 50.00% Fibonacci retracement level at 1.2418. The Fibo kept the rate from declining at the end of last week.
Economic Calendar
Data releases affecting the GBP/USD are set to start on Wednesday, as at 06:00 GMT the UK Consumer Price Index will be released. The rate could move more than 30 pips on the publication of the CPI.
Next UK data release is set to be out at 06:00 GMT on Thursday. The UK Retail Sales could cause a move of 20 pips.
On the same day, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.
Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created 24.1 and 29.9 pip moves.
Last but not least, a notable reaction of above then pips could be created by the US Durable Goods orders.
GBP/USD short-term review
If the 55– and 200-hour SMAs hold, it is likely that some downside potential could prevail in the market. In this case the currency pair could gain support from the Fibo 50.00% and the weekly PP in the 1.2400 area.If the given support holds, the British Pound could consolidate against the US Dollar in the short run. Otherwise, the rate could decline to the monthly PP at 1.2345.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the 55 and 200-day simple moving averages.
Daily chart
Read More: Technical Analysis
Sentiment remains neutral
On Friday, the sentiment on the Swiss Foreign Exchange was 51% short.
By the middle of Monday's GMT trading hours, the sentiment was 53% short.
By the middle of Monday's GMT trading hours, the sentiment was 53% short.