After two attempts to pass the 1.2730 level, the GBP/USD retreated to on Monday.
By the middle of the day's European trading hours, the currency exchange rate had reached the support of the 55-hour SMA at 1.2635.
Economic Calendar
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday.
On Friday, some might watch the 06:00 release of UK GDP and Manufacturing Production. This event could cause a move of GBP/USD from 11.9 to 29.8 base points.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 55– and 100-hour SMAs in the 1.2600 and extend gains in the short term. In this case the pair could face the resistance formed by the weekly R1 and the monthly R2 in the 1.2850 area.However, if the exchange rate fails to exceed the 1.2730 mark, it is likely that the British Pound could trade sideways against the US Dollar in the nearest future.
Hourly Chart
On the daily candle chart, the currency exchange rate has passed the resistance of the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders short the GBP/USD
On Monday, 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate, 60% of pending orders were set to buy the GBP/USD.
Previously, 68% of orders were to sell.
Meanwhile, in the 100-pip range around the rate, 60% of pending orders were set to buy the GBP/USD.
Previously, 68% of orders were to sell.