Since Friday, the GBP/USD exchange rate has been trading sideways in the 1.2180.
Given that the rate is pressured by the 55-, 100- and 200-hour SMAs, it is likely that some downside potential could prevail in the market.
Economic Calendar
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
Each one of these data sets on their own can cause a move of about ten pips. Combined, the move could total to up to 30 pips.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate consolidated at 1.2180. During Monday morning, the rate maintained its consolidation.Note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs in the 1.2200 area. Thus, some downside potential could prevail in the market. It is likely that the pair could target the 1.2100 level.
However, if the exchange rate fails to decline below 1.2160, it is likely that the British Pound could consolidate against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, it can be spotted that the 55-day simple moving average is strengthening the resistance of the monthly S1 at 1.2292.
Daily chart
Read More: Technical Analysis
Traders remain long on GBP/USD
On Monday, the sentiment on the Swiss Foreign Exchange was 57% long. On Friday, the sentiment was 59% long.