On Friday, some downside potential continued to prevail, and the GBP/USD exchange rate declined to 1.2450.
During Monday morning, the rate reversed north. However, it is unlikely that bulls could prevail in the market, as the British Pound remains under pressure of the 55-hour SMA.
Economic Calendar
This week, there are a lot of events, which could impact the GBP/USD currency exchange rate.
Already on Tuesday, at 06:00 GMT the UK Average Earnings index could cause a move from 16.2 to 27.8 base points.
On the same day, at 12:30 GMT the US Retail Sales might cause a notable reaction, as it did so in March and April.
On Wednesday morning, at 06:00 GMT the UK Consumer Price Index is bound to be released. Its impact has declined in the last months. However, prior to that it caused moves above 30 pips in just five minutes.
On Thursday, the future of the GBP is set to be revealed. The Bank of England will make a rate announcement at 11:00 GMT. Expect a move of around 50 pips just on the announcement.
Afterwards, take a look at the US Unemployment Claims at 12:30 GMT. A notable reaction is possible, as a surprise number could cause a notable move.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate reversed south from the resistance formed by the Fibo 61.80% and the 200-hour SMA at 1.2646. During Monday morning, the rate tried to exceed 1.2550.It is likely that the currency pair could remain under pressure of the 55-hour SMA near 1.2585, thus, it could continue to decline. Note that the pair could gain support from the Fibo 50.00% and the weekly S1 at 1.2418.
On the other hand, it is likely that the exchange rate could re-test the given resistance and reverse south in the nearest future.
Hourly Chart
On the daily candle chart, the currency exchange rate has passed the 200-day simple moving average at the 1.2685.
On Monday, the rate pierced the support provided by 100-day simple moving average near 1.2550. Note that the rate could gain support from the 55-hour SMA near 1.2400.
Daily chart
Read More: Technical Analysis
Swiss traders short GBP/USD
Since Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the short sentiment decreased, as it was 57%.
Meanwhile, in the 100-pip range around the rate, 52% of pending orders were set to buy the GBP/USD.
Previously, 84% of orders were to sell.
On Monday, the short sentiment decreased, as it was 57%.
Meanwhile, in the 100-pip range around the rate, 52% of pending orders were set to buy the GBP/USD.
Previously, 84% of orders were to sell.