On Tuesday morning, the GBP/USD currency exchange rate passed the resistance of the weekly R1 simple pivot point at 1.3152. Moreover, afterwards the rate confirmed the technical level as a support.
In regards to the future, the rate has no resistance as high as the 1.3215 level, where three levels could provide resistance. However, the 1.3200 mark could slow down a surge.
Economic Calendar
Despite the week having high impact events on the calendar, Dukascopy Analytics do not expect notable macroeconomic data caused moves.
First of all, note that the FOMC Meeting Minutes on Wednesday will not have a rate announcement and a statement. The Meeting Minutes on their own were excluded from the historical data analysis after for a half-year period it caused only four pip moves on the EUR/USD. Equivalent minor moves occurred on other pairs.
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
As the rate has passed the weekly R1 simple pivot point at 1.3152, it has no technical resistance as high as 1.3215. Near that level a historical high, an upper trend line of a channel up pattern and the weekly R2 simple pivot point were located at. In theory, the rate should reach this level and test itHowever, the pair has left far below it the hourly simple moving averages, which indicates that sideways trading could take place. In addition, the 1.3200 mark could provide resistance and keep the rate down until the SMAs catch up.
Hourly Chart
On the daily candle chart, the rate continues to trade in the borders of a channel up pattern, which has guided the pair since the middle of June. In theory, the pair should reach its lower trend line. It could occur by a decline or sideways trading around the 1.3100 level.
In the meantime, it is the rate is in the overbought zone, as it is trading far above the 55-, 100- and 200-day moving averages. This signals that the rate needs to trade sideways or retrace back down.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment changed on Tuesday, as 62% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
On Monday, 54% of orders were to buy.
Since Friday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment changed on Tuesday, as 62% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
On Monday, 54% of orders were to buy.