The GBP/USD declined, as it was forecast on Monday. The decline reached the support of the weekly S1 simple pivot point at 1.2254 and bounced off it.
However, by the middle of Tuesday's GMT trading hours the rate was back at the pivot point.
Economic Calendar
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
Note that some calendars show the ADP Non-Farm Employment Change and the US ISM Manufacturing PMIs as high impact events, but they have not caused an increase of volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
GBP/USD short-term review
If the weekly S1 pivot point's support holds, it is likely that a reversal north could occur. Meanwhile, it is unlikely that the currency pair could exceed the weekly PP at 1.2399.On the other hand, the exchange rate could remain under pressure of the 55-hour SMA near 1.2335. Thus, some downside potential could prevail in the market. In this case the rate could gain support from the Fibo 38.20% and the weekly S2 near 1.2180.
Hourly Chart
On the daily candle chart, the pair has no additional support, which could stop the decline. Moreover, the daily simple moving averages were passed and began to provide resistance at the end of last week.
Meanwhile, the rate continues to trade in a channel down pattern. The pattern captures the GBP decline against the USD that was caused by different policies of the underlying central banks.
The Bank of England is increasing the GBP money supply. Meanwhile, the US Federal Reserve kept its policy unchanged in June.
Read more in the June Central Banks Updates article.
Daily chart
Read More: Technical Analysis
Long sentiment remains intact
Since late Monday, 61% of trader open position volume on the Swiss Foreign Exchange was in long positions.
However, in the 100-pip range around the rate, 60% of pending orders were set to sell the GBP/USD.
The orders were 53% to buy on Monday.
However, in the 100-pip range around the rate, 60% of pending orders were set to sell the GBP/USD.
The orders were 53% to buy on Monday.