On Tuesday, the currency exchange rate traded between the support of the 1.2300 level and the resistance of the 55-hour SMA, which was moving up near the 1.2360 mark.
The rate had two possible near term future scenarios, as it could both pass the mentioned support and break the resistance of the simple moving average.
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 coronavirus.
GBP/USD short-term review
In the case of the rate passing the support of the 1.2300 level, the pair would decline to the support of the monthly S3 simple pivot point, 100-hour simple moving average and the weekly simple pivot point. These support levels were located from 1.2128 to 1.2185.On the other hand, the pair might find support in the 1.2300 level and the 50.00 Fibo at 1.3211. In this case the rate would have to break the resistance of the 55-hour SMA near 1.2360 to reach for the resistance of the monthly S2 pivot point at 1.2452.
Hourly Chart
On the daily candle chart, the pair is located below the daily simple moving averages, which were located from 1.2665 to 1.2877. It signals that the rate could continue to surge.
Daily chart
Read More: Technical Analysis
Long sentiment continues to decline
On Friday, 68% of open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the sentiment was 65% long, and by the middle of Tuesday's trading already 61% long.
Traders have been taking profits during the last couple of trading sessions.
On Monday, the sentiment was 65% long, and by the middle of Tuesday's trading already 61% long.
Traders have been taking profits during the last couple of trading sessions.