On Friday, the GBP/USD exchange rate failed to exceed the 200-hour SMA near 1.2450.
The given moving average pushed the rate down to the 1.2360 level. Given that the rate is also pressured by the 55- and 100-hour SMAs, it is likely that bears could prevail in the market.
Economic Calendar
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
In addition, some market participants are bound to watch the UK GDP and Manufacturing data being released on Wednesday at 08:30 GMT.
GBP/USD short-term review
At the end of last week, the GBP/USD exchange rate failed to exceed the 200-hour SMA near 1.2450. During Monday morning, the rate touched 1.2350.It is likely that some downside potential could prevail in the market, as the currency pair is pressured by the 55– and 100-hour SMAs, as well the weekly PP in the 1.2390 area. Note that the rate could gain support from the weekly and monthly S1 at 1.2290.
If the given support level holds, it is likely that a reversal north could follow Otherwise, it is likely that the exchange rate could decline below the psychological level at 1.2250.
Hourly Chart
On the daily candle chart, the rate has pierced the lower trend line of a large scale ascending triangle pattern.
In regards to the triangle's shape, a supporting ascending trend line is pushing the rate up. Meanwhile, the rate faces a horizontal resistance, which keeps the GBP/USD below 1.2640.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Monday, the sentiment the Swiss Foreign Exchange was 57% long.