After reaching a new high level at 1.2300 on Friday, the GBP/USD began a decline.
On Monday morning, the rate had retreated down to the support of the 55-hour simple moving average at the 1.2240 level.Economic Calendar
On Monday, at 12:30 GMT the US Durable Goods Orders and Core Durable Goods Orders data will impact the pair.
Although this event is marked as high impact on most economic calendars, it has caused in the time-frame of five minutes moves only from 8.1 to 15.1 pips since start the of April.
On Thursday, at 12:30 GMT the US Preliminary GDP is scheduled to be published. The event has caused moves on GBP/USD charts from 8.0 to 16.7 pips since February.
GBP/USD short-term review
At the end of the previous week, the GBP/USD exchange rate tested the upper boundary of the short-term ascending channel at 1.2300. During Monday morning, the rate reversed south.From a theoretical point of view, it is expected, that the currency pair could continue to trade downwards. In this case, the pair could face the support of the 55-hour SMA and the weekly PP at 1.2220.
Otherwise, it is likely, that the pair could consolidate at the 1.2260/1.2280 level in the nearest future. It is unlikely, that the rate could breach the given channel north due to the resistance of the monthly PP at 1.2330.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
The pair has been doing a surge in the borders of the large pattern in consistency with the theory that a short term surge should occur after bouncing off the lower trend line of a channel down pattern.
In general, the rate should be pushed down by the upper trend line of the pattern near 1.2300.
Daily chart
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Traders are long
On Monday, 65% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 53% of orders were set to sell and 47% were to buy.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 53% of orders were set to sell and 47% were to buy.