The GBP/USD has been trading near the 1.2800 level since reaching it on Thursday. By large the situation had not changed on Monday morning.
Meanwhile, the resistance of the 1.2850 mark, which kept the pair down on Friday, was approached by the 55-hour simple moving average.
Economic Calendar
During the week, noteworthy events start on Wednesday, 06:00 GMT, at that time, the United Kingdom Consumer Price Index year on year change is set to be published. During the last six months this event has caused moves from 10.0 to 16.2 base points.
On the same day, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published. The event could cause 11.5 to 35.9 pip moves.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement. The GBP/USD has moved from 18.9 to 68.5 pips on the announcements.
On Thursday, the Bank of England is scheduled to make a rate announcement at 11:00 GMT. All GBP traders are bound to watch this event. Since March, the event has caused moves from 40.0 to 62.1 pips.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. Note that the two last releases caused, respectively, 20 and 49 pip moves.
On Friday, minor 10.0-16.2 moves might be created by the 06:00 GMT UK Retail Sales.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
It is likely that some downside potential could prevail in the market, as the currency pair is pressured by the 55-hour moving average near 1.2850. In this case the pair could gain support from the weekly S1, the monthly S3 and the Fibo 61.80% in the 1.2615/1.2700 range.However, if the given moving average does not hold, it is likely that the exchange rate could extend gains. Note that the rate would have to exceed the weekly PP and the 100-hour SMA in the 1.2930 area.
Hourly Chart
On the daily candle chart, the pair has passed the support of the 55-day simple moving averages, which kept the exchange rate up on Wednesday.
Next support for the pair on this chart is the 200-day SMA at 1.2736 and the 100-day SMA at 1.2688.
Daily chart
Read More: Technical Analysis
Traders are almost neutral
On Monday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell the GBP/USD pair.
Previously, the orders were 88% to sell.
On Monday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell the GBP/USD pair.
Previously, the orders were 88% to sell.