During Wednesday morning, the GBP/USD exchange rate was testing the weekly S1 at 1.1977.
Given that the rate is pressured by the 55-hour SMA, it is likely that some downside potential could prevail.
Economic Calendar
This week, there are no events left that could impact on the GBP/USD rate.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate declined to the 1.2000 level. During Wednesday morning, the rate was testing the given level.Note that the currency pair is pressured by the 55-hour SMA near 1.2200. Thus, some downside potential could prevail in the market. In this case the pair could target the psychological level at 1.1800.
However, the exchange rate could gain support from the weekly S1 at 1.1977. If the given level holds, the British Pound could consolidate against the US Dollar near the 1.2000 level.
Hourly Chart
On the daily candle chart, the drop of the pair can be observed better. One can see that the support level formed by the monthly S3 was broken.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Wednesday, 62% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.