The GBP/USD jumped on Tuesday morning to the 1.2500 mark. At that level the rate met with the resistance of the simple weekly R1 pivot point.
The future of the rate depended on whether or not the rate breaks the resistance of the pivot point.
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
On the one hand, it is likely that some upside potential could continue to prevail in the market. In this case the currency pair could exceed the psychological level at 1.2550.However, if the weekly R1 holds, it is likely that a reversal south could occur. Note that the rate could face the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs, the Fibo 50.00% in the 1.2345/1.2418 range.
Hourly Chart
On the daily candle chart, the pair is set to face the resistance of the 55-day simple moving average, which on Tuesday was located at the 1.2530 mark.
Daily chart
Read More: Technical Analysis
Traders remain long on GBP/USD
Since the middle of Monday's GMT trading hours, the sentiment on the Swiss Foreign Exchange was 57% long.
Namely, 57% of open GBP/USD position volume was in long positions.
Namely, 57% of open GBP/USD position volume was in long positions.