On Monday, the GBP/USD currency exchange rate was testing the resistance of a channel up pattern. In the meantime, the rate was supported by the 1.2380 level.
Future forecasts were based upon, which of the two mentioned levels would get passed.
Economic Calendar
Traditionally, the first week of the month is busy on the economic calendar.
On Monday, June 1, the Institute for Supply Management will release the US ISM Manufacturing PMI survey results at 14:00 GMT.
On Wednesday, June 3, two macroeconomic events from the US are expected: the ADP Non-Farm Employment Change at 12:15 GMT and the ISM Non-manufacturing PMI at 14:00 GMT.
The week will end with the US Employment data set release on Friday 12:30 GMT.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate consolidated in the 1.2325 area. During Monday morning, the rate reached the upper line of the short-term ascending channel at 1.2425.From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the currency pair could target the lower channel line circa 1.2250. Note that the pair could gain support from the 55– and 100-hour SMAs, as well the weekly and monthly PPs in the 1.2306/1.2346 range.
If the given support cluster holds, it is likely that the British Pound could consolidate against the US Dollar in the following trading session.
Hourly Chart
On the daily candle chart, it can be spotted that the rate surpassed the resistance formed by the 55-day simple moving average and the monthly S1 at 1.2292.
Note that the rate could face the resistance formed by the 100- and 200-day moving averages in the 1.2600 area. Daily chart
Read More: Technical Analysis
Traders remain long
On Friday, the sentiment on the Swiss Foreign Exchange was 57% long.
By the middle of Monday's GMT trading hours, the sentiment was 55% long.
By the middle of Monday's GMT trading hours, the sentiment was 55% long.