On Monday, the GBP/USD started the week by opening lower and afterwards surging. By the middle of the day, the pair had reached for the 38.20% Fibo at 1.2190.
In the case of the Fibo failing to provide resistance to the surge, the pair could reach for 100-hour SMA and the weekly simple pivot point near 1.2218.
Economic Calendar
Most macroeconomic data releases are expected to come from the UK.
Namely, the UK CPI data release is set to be published on Wednesday, May 20, at 6:00 GMT.
On Thursday, the UK Markit Manufacturing and Services PMIs survey results are expected to be released at 8:30 GMT.
On Friday, the UK Retail Sales data will be published at 8:30 GMT.
In addition, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT.
17.05-23.05 Event Historical Reactions
GBP/USD short-term review
In the case of the 38.20% Fibo being passed, the rate would first aim at the weekly PP and the 100-hour SMA near 1.2218. Afterwards, next resistance was a monthly PP and the 200-hour SMA at 1.2292.On the other hand, if the rate bounced off the Fibo, it would test the support of the 55-hour SMA and afterwards the 1.2100 mark.
Hourly Chart
On the daily candle chart, the rate has passed the support of the mentioned 38.20% Fibo. Next close by support was provided by the two pivot points near 1.1990.
Meanwhile, note that the rate is pressured by the 55-day moving average near 1.2370.
Daily chart
Read More: Technical Analysis
Traders remain long on GBP/USD
Since Thursday, the sentiment the Swiss Foreign Exchange was 69% long.
By the middle of Monday's GMT trading hours, the sentiment had declined to 66% long.
By the middle of Monday's GMT trading hours, the sentiment had declined to 66% long.