As expected on Friday, the GBP/USD passed the resistance of the 1.2300 level. Moreover, on Friday, the rate approached the resistance of the 1.2500 mark.
On Monday, the rate had retreated, as it consolidated its previous gains.
Economic Calendar
This week, data can be ignored, as the fundamental background is changed in a way that historical data does not matter.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the virus.
GBP/USD short-term review
During the previous trading session, the GBP/USD exchange rate tested the resistance level formed by the monthly S2 at 1.2452. During Monday morning, the rate was trading neat the given level.However, if the monthly S2 holds, it is likely that some downside potential could prevail in the market. Note that the exchange rate could gain support from the monthly S3, the weekly PP and the 55-hour SMA in the 1.2100 area.
Hourly Chart
On the daily candle chart, the pair is located below the daily simple moving averages, which were located from 1.2667 to 1.2882. It signals that the rate could continue to surge.
Daily chart
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Long sentiment continues to decline
On Friday, 68% of open position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Monday's GMT trading hours, the sentiment was 65% long.
As the rate continues to surge, traders take profits.
By the middle of Monday's GMT trading hours, the sentiment was 65% long.
As the rate continues to surge, traders take profits.