The GBP/USD rate has reached the 1.2600 level, which together with the monthly simple R1 pivot point provided resistance since the late hours of Tuesday.
In the near term future, the pair was expected to trade sideways and consolidate its gains.
Economic Calendar
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
Yesterday, the GBP/USD exchange rate raised to the monthly R1 at 1.2615. During Wednesday morning, the rate was testing the given resistance level.If the given level holds, it is likely that a reversal south could occur. Note that the currency pair could gain support from the weekly R2 at 1.2536.
If the given support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term. Otherwise, the pair could decline to the weekly R1 at 1.2448.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 100-day simple moving average at 1.2576. This level kept the rate down during Tuesday's trading hours.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Wednesday, the sentiment on the Swiss Foreign Exchange was 60% short.
During Tuesday's trading, the sentiment was 56% short.
In the meantime, of all of the set up trade orders on the Swiss Foreign Exchange, 53% were set to buy the GBP/USD.
During Tuesday's trading, the sentiment was 56% short.
In the meantime, of all of the set up trade orders on the Swiss Foreign Exchange, 53% were set to buy the GBP/USD.