The 1.3000 level is expected to provide support. However, take into account that the 1.3000 failed to stop the pair from declining two times in January.
Economic Calendar
During the last week of January, most attention will be paid to the US Federal Reserve and the Bank of England. Both central banks have scheduled their rate announcements for this week.
Before that, on Tuesday, minor spike in volatility could occur due to the US Durable Goods Orders Release at 13:30 GMT. The event has caused GBP/USD moves from 6.2 to 16.8 pips.
The US will be the first to publish their rate. The FED's event is scheduled for 19:00 GMT on Wednesday. This time, no rate cut is expected. GBP/USD has moves 17.0 and 21.3 pips during the times that no rate cut has occurred.
The Bank of England will announce their rate decision on Thursday, at 12:00 GMT. The announcement, without any rate changes, since June 2019 has caused GBP/USD moves from 21.3 to 83.6 pips.
Afterwards, on the same day, the US Advance GDP will be released at 13:30 GMT. A move from 11.5 to 36.1 pips can be expected.
The week's event historical data tables have been published. Click on the link below to read the article.
Read More: 27.01-31.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GPB/USD exchange rate tried to surpass the resistance formed by the 55– and 100-hour SMAs. During Tuesday morning, the rate declined to the lower boundary of a medium-term ascending channel.From a theoretical point of view, it is likely that a reversal north could occur in the nearest future. In this case the currency pair could re-test the SMA resistance.
However, note that the exchange rate is pressured by the 200-hour moving average. Thus, the British Pound could depreciate against the US Dollar in the short run. A possible downside target is the weekly S1 at 1.2968.
Hourly Chart
On the daily candle chart, the rate has pierced the support of the 55-day simple moving average, which has kept the pair from declining since late December.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Tuesday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to sell and 50% were buy orders.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to sell and 50% were buy orders.