During Tuesday's European trading hours, the GBP/USD traded in limbo around the 1.2650 level.
In regards to the near term future, it was expected that the additional support of the 55-hour SMA could cause another surge of the pair.
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
In the near term future, the rate is expected to trade sideways near the 1.2650 level. The sideways trading could continue until it would get approached by the support of the 55-hour SMA.On the other hand, a fundamental announcement, as one of the described above, could end the sideways trading.
Hourly Chart
On the daily candle chart, on Tuesday, the rate had tested the resistance of the 200-day simple moving average, which was located at the 1.2687 level.
Daily chart
Read More: Technical Analysis
Swiss traders short GBP/USD
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 56% short.
Meanwhile, in the 100-pip range around the rate, 58% of pending orders were set to sell the GBP/USD.
Previously, 52% of orders were to buy.
By the middle of Tuesday's GMT trading hours, the sentiment was 56% short.
Meanwhile, in the 100-pip range around the rate, 58% of pending orders were set to sell the GBP/USD.
Previously, 52% of orders were to buy.