On Friday, the GBO/USD reached the 1.4000 level, which provided resistance. This resulted in a decline, which tested the support of this week's channel up pattern.
Economic Calendar
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on the GBP/USD from 10.3 to 26.3 base points, as it has done since October 16, 2020.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The GBP/USD has moved from 18.9 to 36.4 base points since November 5, 2020 on the announcement.
At 12:00 GMT on Thursday, the Bank of England is bound to make a rate statement and reveal its monetary policy statement. A move from 23.6 to 73.1 pips has occurred due to this event since August 2020.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
At midnight to Friday, the GBP/USD reached the resistance of the 1.4000 mark. This level provided resistance and the currency exchange rate retreated. By the middle of the day's trading, the retracement down had reached the combined support of the channel up pattern and the 55-hour simple moving averages.The channel's line and the 55-hour SMA were most likely going to provide support and cause another test of the resistance of the 1.4000 level. If the 1.4000 level would get passed, the rate could aim at the 1.4100 mark.
On the other hand, if the support levels fail, the rate could look for support in the 1.3900 level, which was strengthened by the 100 and 200-hour simple moving average.
Hourly Chart
On the daily candle chart, the rate has found support in the 1.3800 mark and ended its retracement down that started after the pair encountered resistance at 1.4200.
In addition, the 55-day SMA had almost caught up with the rate. It appears that the SMA is capable of pushing the GBP/USD up by just approaching it by approximately 50 base points.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since Wednesday, 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
Since Wednesday, 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.