As apparent on the chart, the GBP/USD exchange rate was not able to surpass the psychological level at 1.2160.
During Monday's morning, the rate was trading at the 1.2120 level. Note, that the currency pair is supported by the 55-, 100- and 200-hour SMAs, thus, a reversal north could occur.Economic calendar
Note, that the FOMC Meeting Minutes will be published on Wednesday at 18:00 GMT. The publication of the text has since January caused moves from 9.2 to 22.5 base points on the GBP/USD charts.
GBP/USD short-term review
At the end of the previous trading week, the GBP/USD exchange rate tried to surpass the psychological level at 1.2160. During Monday's morning, the rate declined to the support level formed by the 55-hour SMA and the weekly PP at 1.2114.Note, that the currency pair is also supported by the 100– and 200-hour SMAs, currently located circa 1.2100. Thus, if the given support holds, is likely, that a reversal north could occur, and the pair could re-test the given psychological level.
Otherwise, it is likely, that the British Pound could depreciate against the US Dollar, and the rate could decline to the psychological level at the 1.2080 mark.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
Recently, the pair reversed north from the lower channel line. Thus, form a theoretical point of view, the pair could trade upwards in the short term.
However, due to the angle of the pattern the rate could trade in any direction and it would still be in consistency with the channel.
Daily chart
Read More: Technical Analysis
Traders remain long
On Monday, 72% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 59% of orders were set to sell and 41% were to buy.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 59% of orders were set to sell and 41% were to buy.