The GBP/USD exchange rate failed to exceed the psychological level at 1.2660.
On Monday morning, the rate was testing the support formed by the 100-hour SMA and the weekly PP at 1.2590.
Economic Calendar
This week, data releases are scheduled to start on Tuesday. However, the UK GDP and the US CPI data sets have not caused notable moves. Normal volatility remains intact during these announcements.
On Wednesday, it is possible that the UK CPI causes a minor increase of volatility at 06:00 GMT.
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
The week will end with the UK Retail Sales release at 08:30 GMT. Detailed data with moves in pips throughout the last half a year can be examined by clicking on the link below.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate failed to exceed the 1.2660 level. During Monday morning, the rate declined to support formed by the 100-hour SMA and the weekly PP at 1.2590.If the given support holds, it is likely that some upside potential could prevail in the market, and the currency pair could re-test the 1.2660 mark.
Meanwhile, note that the pair could face the resistance of the 55-hour SMA near 1.2624. Thus, it is likely that some downside potential could prevail. In this case the pair could gain support from the 200-hour SMA, as well the weekly S1 and the monthly PP in the 1.2490/1.2533 area.
Hourly Chart
On the daily candle chart, the rate has faced the resistance provided by the Fibo 61.80% and the 200-day moving average near 1.2680.
In the meantime, the 55- and 100-day moving average could provide support circa 1.2440.
Daily chart
Read More: Technical Analysis
Traders remain long
On Monday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 59% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 59% of pending orders were set to buy the GBP/USD.