The GBP/USD exchange rate has been consolidating near the monthly R1 at 1.2314 since Wednesday.
If the given support level holds, the rate could reverse north in the short run. However, note that the British Pound is under pressure, as the Brexit crisis is escalating.
Economic Calendar
This week there are couple data releases from the US that could move the GBP/USD exchange rate.
Today, the US Consumer Price Index data will be published at 12:30 GMT. Last data release caused a nineteen-pip move.
On Friday, September 13, the US Retail Sales data will be published at 12:30 GMT. Last time, the GBP/USD exchange rate moved for almost 19 pips.
GBP/USD short-term review
On Wednesday, the GBP/USD exchange rate tested the support provided by the monthly R1 at the 1.2314 mark. During today's morning, the rate continued to test the given level.Note that the currency pair is pressured by the 55– and 100-hour SMAs, currently located at 1.2343 and 1.2331 respectively. Thus, if the given support and resistance hold, it is likely that the rate could consolidate.
On the other hand, the given moving averages might not hold, and the British Pound could extend gains against the US Dollar within the following trading session. A possible upside target is the psychological level at 1.2380.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average. The SMA on Tuesday began to provide support to the monthly pivot point at 1.2314.
Namely, there is no longer a barrier to the pair's surge on the daily candle chart.
Daily chart
Read More: Technical Analysis
Traders became short
On Thursday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 59% of orders were set to buy and 41% were to sell.
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 59% of orders were set to buy and 41% were to sell.