On Monday, the resistance of the 55-hour SMA and the simple weekly pivot point near 1.2400 provided resistance to the GBP/USD.
In the future, the rate was expected to continue the decline. However, the 1.2300 level was providing psychological support.
Economic Calendar
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
Note that some calendars show the ADP Non-Farm Employment Change and the US ISM Manufacturing PMIs as high impact events, they have not caused an increase of volatility. See the tables below.
Take a look at all of the historical reaction tables by clicking on the link below.
GBP/USD short-term review
Last week, the GBP/USD exchange rate revealed a medium-term descending channel. During Monday morning, the rate pierced the monthly PP at 1.2346.Given that the currency pair remains under pressure of the 55-hour SMA near 1.2390, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the weekly S1, is located at 1.2254.
Meanwhile, it is unlikely that a breakout north from the given channel could occur due to the resistance range formed by the 100– and 200-hour SMAs, as well the Fibo 50.00% in the 1.2418/1.2447 area.
Hourly Chart
On the daily candle chart, the pair has no support, which could stop the decline.
Moreover, the daily simple moving averages were passed and began to provide resistance at the end of last week.
Daily chart
Read More: Technical Analysis
Long sentiment grows
On Friday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Monday's trading, the sentiment was 62% long.
Short positions had been closed by taking profits, and long position could have been opened in the expectations of a retracement back up.
Meanwhile, in the 100-pip range around the rate, 53% of pending orders were set to buy the GBP/USD.
By the middle of Monday's trading, the sentiment was 62% long.
Short positions had been closed by taking profits, and long position could have been opened in the expectations of a retracement back up.
Meanwhile, in the 100-pip range around the rate, 53% of pending orders were set to buy the GBP/USD.