The GBP/USD exchange rate consolidated near the support level – the Fibo 38.20% at 1.2190.
In theory, it is likely that some downside potential could prevail in the market, as the rate could continue to trade within the falling wedge pattern.
Economic Calendar
Today, the US Retail Sales is being released at 12:30 GMT.
Next week, most macroeconomic data releases are expected to come from the UK. Namely, the UK CPI data release is set to be published on Wednesday, May 20, at 6:00 GMT. On Thursday, the UK Markit Manufacturing and Services PMIs survey results are expected to be released at 8:30 GMT. On Friday, the UK Retail Sales data will be published at 8:30 GMT.
In addition, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT.
17.05-23.05 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate consolidated near the support level—the Fibo 38.20% at 1.2190. During Friday morning, the rate maintained its consolidation.From a theoretical perspective, it is likely that the currency pair could trade downwards within the falling wedge pattern in the short term. In this case the pair could decline below 1.2150.
Meanwhile, note that the exchange rate is pressured by the 55-hour SMA near 1.2230. If the given support and resistance hold, it is likely that the rate could continue to consolidate in the short run.
Hourly Chart
On the daily candle chart, the rate is testing the support level formed by the Fibo 38.20% at 1.2100.
Note that the rate is pressured by the 55-day moving average near 1.2420. Thus, some downside potential could prevail in the market.
Daily chart
Read More: Technical Analysis
Traders go long
Since Thursday, the sentiment the Swiss Foreign Exchange was 69% long.