During Friday, the GBP/USD exchange rate consolidated in the 1.2350 area. During Monday morning, the rate extended gains and reached 1.2440.
The rate could gain support from the 200-hour SMA, as well the Fibo 50.00% and trade upwards within the following trading hours.
Economic Calendar
This week starts with the US Advance GDP on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers of a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.
Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
On Friday, the US ISM Manufacturing PMI is scheduled to be published at 14:00 GMT.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate traded sideways in the 1.2350 area. During Monday morning, the rate raised to the 1.2450 level.It is likely that the currency pair could gain support from the 200-hour SMA and the Fibo 50.00% at 1.2418 and trade upwards in the short term. In this case the pair could face the resistance level—the weekly R1 at 1.2500.
If the given resistance level holds, it is likely that the British Pound could trade sideways against the US Dollar within the following trading session.
Also, it is unlikely that bears could prevail in the market, and the exchange rate could decline below 1.2340/1.2374 range due to the support cluster formed by the 55– and 100-hour SMAs, as well the weekly and monthly PPs.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the 55 and 200-day simple moving averages.
In regards to the future, the rate could decline to the 1.2200 level, which provided the rate with support at the start of April.
Daily chart
Read More: Technical Analysis
Long sentiment increases
Since the middle of Wednesday's GMT trading hours, the sentiment on the Swiss Foreign Exchange was neutral.
On Friday, traders went long, as the sentiment was 54% long.
On Monday, the sentiment was 57% long.
On Friday, traders went long, as the sentiment was 54% long.
On Monday, the sentiment was 57% long.