The GBP/USD exchange rate tumbled below the 1.2540 level.
It is unlikely that some downside potential could prevail, as the rate could gain support from the weekly S1 and the monthly PP near 1.2500.
Economic Calendar
This week, data releases are scheduled to start on Tuesday. However, the UK GDP and the US CPI data sets have not caused notable moves. Normal volatility remains intact during these announcements.
On Wednesday, it is possible that the UK CPI causes a minor increase of volatility at 06:00 GMT.
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
The week will end with the UK Retail Sales release at 08:30 GMT. Detailed data with moves in pips throughout the last half a year can be examined by clicking on the link below.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate declined to 1.2540. During Tuesday morning, the rate dropped to 1.2520.It is likely that the currency pair could gain support from the weekly S1 and the monthly PP near 1.2500. Thus, a reversal north could occur, and the pair could try to surpass the resistance formed by the 55– and 100-hour SMAs, as well the weekly PP in the 1.2586/1.2600 area.
Meanwhile, note that the exchange rate could face the resistance formed by the 200-hour moving average near 1.2550. If the given resistance holds, it is likely that the rate could consolidate.
Hourly Chart
On the daily candle chart, the rate has faced the resistance provided by the Fibo 61.80% and the 200-day moving average near 1.2680.
In the meantime, the 55- and 100-day moving average could provide support circa 1.2440.
Daily chart
Read More: Technical Analysis
Traders remain long
Since Monday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were slightly bullish, as 55% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were slightly bullish, as 55% of pending orders were set to buy the GBP/USD.