During Tuesday's morning GMT trading hours, the GBP/USD currency exchange rate reached the 1.2260 level. Afterwards, this level began to provide resistance.
In regards to the near term future, the rate was set to test the 1.2260, which would be strengthened by the 200-hour SMA.
Economic Calendar
This week, most macroeconomic data releases that would impact the GBP/USD 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 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 raised to the weekly PP at 1.2218. During Tuesday morning, the rate was testing the 200-hour SMA near 1.2270.If the given moving average holds, it is likely that a reversal south could occur in the nearest future. In this case the rate could target the psychological level at 1.2100.
Meanwhile, note that in the case of a decline the currency pair could gain support from the 55– and 100-hour SMAs, as well the Fibo 38.20% in the 1.2165/1.2195 range. If the given support holds, the pair could consolidate by trading sideways in the short term.
Hourly Chart
On the daily candle chart, the rate has pierced the support of the mentioned 38.20% Fibo. Next close by support was provided by the two pivot points near 1.1990.
Meanwhile, note that the rate is pressured by the 55-day moving average near 1.2370.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
Since Thursday, the sentiment on the Swiss Foreign Exchange was 69% long.
By the middle of Monday's GMT trading hours, the sentiment had declined to 66% long. On Tuesday, it was already 60% long.
Traders had been taking profits during the recent surge.
By the middle of Monday's GMT trading hours, the sentiment had declined to 66% long. On Tuesday, it was already 60% long.
Traders had been taking profits during the recent surge.