On Tuesday, the GBP/USD currency exchange rate passed the support of the 55-hour simple moving average.
By the middle of the days GMT trading hours, the pair had no support as low as the 1.3000 mark.
Economic Calendar
During the week, there will be couple events that could affect the GBP/USD rate.
On Wednesday, March 11, the British GDP and Manufacturing Production data will be released at 9:30 GMT. The vent has caused moves from 11.9 to 23.6 pips since October. The largest move of 23.6 pips occurred in February.
At the same day, the US CPI and Core CPI will be published at 12:30 GMT. This event has caused moves from 8.2 to 19.4 pips.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reversed south from the Fibo 50.00% at 1.3200. During Tuesday morning, the rate was testing the 55-hour SMA near 1.3060. The SMA was eventually passed.In the near term future, the pair was expected to reach for the 1.3000 level, which was supported by the 100-hour simple moving average.
In the case of the pair finding support in the 1.3000 level, the rate would retrace back up to the 55-hour SMA. On the other hand, the rate could decline below 1.3000 and reach for the weekly pivot point at 1.2949.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 55 and 100-day simple moving averages, which provided resistance near 1.3000 level.
In the meantime, by connecting the February and December low levels and setting the parallel line at the December 16 high level, once can observe a channel down pattern. The pattern's resistance line is strengthening the resistance of the 1.3200 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Monday's London trading hours, the sentiment was balanced. 50% of volume was in long and short positions.
On Tuesday, the sentiment was 53% short. Traders continue to bounce around in the neutral zone.
By the middle of Monday's London trading hours, the sentiment was balanced. 50% of volume was in long and short positions.
On Tuesday, the sentiment was 53% short. Traders continue to bounce around in the neutral zone.