During Wednesday morning, the GBP/USD exchange rate reversed north from the support from the weekly R1 and the monthly S1 at 1.2290.
It is likely that some upside 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
Yesterday, the GBP/USD exchange rate touched the 1.2360 level. During Wednesday morning, the rate was testing the support formed by the weekly R1 and the monthly S1 at 1.2290.If the given support level holds, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could try to surpass the 1.2360 mark.
If the given support does not hold, it is likely that some downside potential could prevail in the market. Note that the rate could gain support from the 55-, 100– and 200-hour SMAs in the 1.2215/1.2260 range.
Hourly Chart
On the daily candle chart, it can be spotted that the rate has pierced the resistance formed by the 55-day simple moving average and the monthly S1 at 1.2292.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Wednesday, the sentiment on the Swiss Foreign Exchange was 60% long. Yesterday, the sentiment was 56% long.