On Tuesday, the GBP/USD traded between the support of the 1.2420 and 1.2485 levels.
In regards to the near term future, it was more likely that the pair could decline, as it faced two SMAs and a monthly pivot point from 1.2470 to 1.2485.
Economic Calendar
There are a couple of minor data releases scheduled for the week.
On Tuesday, the US ISM Non-Manufacturing PMI is set to be released at 14:00 GMT. In addition, a minor move could be caused by the ADP Non-Farm Employment Change.
The week will end with the employment data release from the United States, on Friday at 12:30 GMT.
GBP/USD short-term review
At the beginning of May, the GBP/USD exchange rate reversed south from the psychological level at 1.2600. During today's morning, the rate pierced the 200-hour SMA near 1.2440.Given that the currency pair is pressured by the 55– and 100-hour SMAs near 1.2480, it is likely that some downside potential could prevail in the market. In this case the pair could decline to the weekly S1 at 1.2360.
However, note that the exchange rate could gain support from the Fibo 50.00% at 1.2418. If the given level holds, it is likely that the British Pound could consolidate against the US Dollar in the short run.
Hourly Chart
On the daily candle chart, the pair has revealed an ascending triangle pattern. Namely, a supporting ascending trend line is pushing the rate up. Meanwhile, the rate faces a horizontal resistance, which keeps the GBP/USD below 1.2640.
Daily chart
Read More: Technical Analysis
Swiss traders are long
On Tuesday, the sentiment on the Swiss Foreign Exchange was 55% long.
Namely, 55% of open GBP/USD position volume was in long positions
Namely, 55% of open GBP/USD position volume was in long positions