On Monday, the GBP/UDS was trading below the resistance of a 50.00% Fibonacci retracement level and the 55-hour SMA at 1.2420.
It was expected that the rate would decline, as soon as additional resistance is provided by the 100-hour simple moving average.
Economic Calendar
There are a couple of events, which could impact the GBP/USD currency exchange rate.
On Tuesday, the UK Flash Manufacturing and Services PMIs survey results will be published at 8:30 GMT. Meanwhile, the US Flash Manufacturing PMI survey results will be released at 13:45 GMT.
On Thursday, macroeconomic data set release from the US could impact the market. The US Durable Goods Orders, Final GDP and Unemployment Claims data are set to be published at 12:30 GMT.
GBP/USD short-term review
By the middle of Monday's GMT trading hours, the GBP/USD reached and bounced off the resistance of the 55-hour SMA and a 50.00% Fibonacci retracement level at 1.2420. In the near term future, the rate is expected to once again make an attempt to pass the support of the monthly simple pivot point at 1.2346.Afterwards, the rate could trade sideways above the pivot point and below the resistance of the Fibo and hourly simple moving averages. However, if the support of the pivot point fails, the rate could continue its decline and reach for the weekly S1 simple pivot point at 1.2234.
Hourly Chart
On the daily candle chart, the pair has dropped below the daily simple moving averages. Note that the 55-day simple moving average is strengthening the resistance of the 1.2420 level.
In the meantime, the rate is being approached by the additional technical resistance of the 100-day simple moving average, which on Monday was located near the 1.2500 level.
Daily chart
Read More: Technical Analysis
Short sentiment grows
On Monday, 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 53% short.
Meanwhile, in the 100-pip range around the rate, 72% of pending orders were set to sell the GBP/USD.
The orders were neutral on Friday.
On Friday, the sentiment was 53% short.
Meanwhile, in the 100-pip range around the rate, 72% of pending orders were set to sell the GBP/USD.
The orders were neutral on Friday.