During the first half of Monday, the GBP/USD exchange rate dropped to the Fibo 38.205 at 1.2918.
If the given support level holds, it is likely that a reversal north could occur in the nearest future.
Economic Calendar
This week, the US Durable Goods Orders on Monday at 13:30 GMT could cause a move.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 23.12-27.12 Event Historical Reactions
GBP/USD short-term review
At the end of previous week, the GBP/USD exchange rate traded sideways around the monthly R1 at 1.3028. During today's morning, the rate surpassed the 1.3000 level.Note that the currency pair is pressured by the 55– and 100-hour SMAs, it is likely that some downside potential could prevail in the market. The pair could decline to the Fibo 38.20% at 1.2918.
On the other hand, the British Pound could continue to consolidate against the US Dollar in the nearest future. Also, it is unlikely that the pair could exceed the monthly R2 at 1.3115.
Hourly Chart
On the daily candle chart, the rate's decline has broken the large scale channel up pattern. Due to that reason the closest by support on the daily chart was the 55-day simple moving average at the 1.2900 level.
Daily chart
Read More: Technical Analysis
Traders short the decline
On Monday, 54% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were strongly bullish. In the 100-pip range, 97% of orders were to buy and 3% were sell orders.
Meanwhile, trader orders were strongly bullish. In the 100-pip range, 97% of orders were to buy and 3% were sell orders.