Yesterday, the GBP/USD exchange rate tested the support level formed by the weekly and monthly S1s at 1.2290.
Given that the rate is pressured by the 55- and 100-hour SMAs, it is likely that some downside potential 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
Yesterday, the GBP/USD exchange rate tested the support formed by the weekly and monthly S1s at 1.2290. During Tuesday morning, the rate was trading at 1.2320.Given that the currency pair is pressured by the 55– and 100-hour SMAs near 1.2370, it is likely that some downside potential could prevail in the market. In this case the pair could decline to the psychological level at 1.2250.
However, if the support level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term.
Also, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the Fibo 50.00% and 200-hour SMA near 1.2420.
Hourly Chart
On the daily candle chart, the rate has pierced the lower trend line of a large-scale ascending triangle pattern.
Note that the rate is pressured by the 55-day moving average near 1.2420.
Daily chart
Read More: Technical Analysis
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