GBP/USD remains near previous levels

Source: Dukascopy Bank SA
The broader strength of the US Dollar has resulted in the GBP/USD pair passing below the 1.2548/1.2579 range. However, the event has not been followed by a larger decline of the rate. During Tuesday's European trading hours, the rate fluctuated around the pierced support zone, as if confirming it as resistance before resuming the broader decline.

Economic Calendar



Watch the US ISM services PMI release on Wednesday at 14:00 GMT. Besides this release, there are no notable events scheduled that can impact the financial markets.

GBP/USD short-term view

A resumption of the GBP decline against the USD Dollar is expected to look for support in the combination of the weekly S1 simple pivot point at 1.2515 and the 1.2500 mark. Further below, note the weekly S2 at 1.2447.

On the other hand, a move above the 1.2580 level could be stopped by the descending 50, 100 and 200-hour simple moving averages near the 1.2600 mark. Higher above, take into account the weekly simple pivot point at 1.2631.

Hourly Chart

GBP/USD daily chart's review

On the daily candle chart, the GBP/USD pair is confirming the 1.2610/1.2670 range as resistance. The range acted as support throughout the first half of August.

A continuation of the broader decline could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.

Daily chart


Traders are bullish on GBP


On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 60% long.

Meanwhile, trader pending orders in the 100 pip range around the rate were 64% to sell.

On Monday, positions were 60% long and orders were 57% to sell.

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