The GBP/USD currency exchange rate began the week's trading by trading between the support of the 200-hour simple moving average and the resistance of the 55-hour simple moving average.
Future forecasts were based upon which one of the two SMAs fails to hold.
Economic Calendar
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on the GBP/USD from 10.3 to 26.3 base points, as it has done since October 16, 2020.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The GBP/USD has moved from 18.9 to 36.4 base points since November 5, 2020 on the announcement.
At 12:00 GMT on Thursday, the Bank of England is bound to make a rate statement and reveal its monetary policy statement. A move from 23.6 to 73.1 pips has occurred due to this event since August 2020.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
If the rate manages to pass the resistance of the 55-hour simple moving average, the pair could once again test the high level of 1.4000. On the other hand, if the support of the 200-hour SMA fails, the GBP/USD could once again reach the 1.3860 level.Hourly Chart
On the daily candle chart, the rate has found support in the 1.3800 mark and ended its retracement down that started after the pair encountered resistance at 1.4200.
In addition, the 55-day SMA had almost caught up with the rate. It appears that the SMA is capable of pushing the GBP/USD up by just approaching it by approximately 50 base points.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since Wednesday, 55% 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 51% to buy the GBP/USD pair.
Since Wednesday, 55% 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 51% to buy the GBP/USD pair.