The GBP/USD exchange rate has revealed a falling wedge pattern.
In theory, it is likely that some downside potential could prevail in the market, as the rate could trade within the given pattern.
Economic Calendar
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, the US Retail Sales on Friday is being released at 12:30 GMT.
In addition, some market participants are bound to watch the UK GDP and Manufacturing data being released on Wednesday at 08:30 GMT.
GBP/USD short-term review
The GBP/USD exchange rate has revealed a falling wedge pattern. During Thursday morning, the rate reversed north from the lower pattern line at 1.2190.From a theoretical point of view, it is likely that the currency pair could continue to trade downwards within the given pattern in the short run. Note that the pair could gain support from the Fibo 38.20% and the weekly S2 in the 1.2166/1.2190 range.
If the given support area holds, it is likely that the British Pound could consolidate against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, the rate breached the ascending triangle pattern south.
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
On Thursday, the sentiment the Swiss Foreign Exchange was 69% long.