Since the Monday drop, the GBP/USD currency exchange rate has recovered. However, the recovery has been kept down by the resistance of the 55, 100 and 200-hour simple moving averages in the 1.3380/1.3400 zone.
In the near term future the rate could be pushed down by the SMAs. However, note that fundamental EU-UK trade deal news continue to be incoming and impacting the currency exchange rate. The rate could trade sideways with volatility until some certainty in the matter appears.
Economic Calendar
There are couple of macroeconomic data releases expected that could move the GBP/USD rate.
On Thursday, the US CPI data sets and the Unemployment Claims are set to be published at 13:30 GMT.
The week is set to end with the US Producers Price Index, which has caused GBP/USD moves from 11.1 to 36.2 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that some downside potential could prevail in the market as the currency pair is pressured by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3380/1.3425 range.Hourly Chart
On the daily candle chart, note that the rate is overbought, as the 55 and 100-day simple moving averages were located near the 1.3085 level.
Meanwhile, note that the rate managed to pierce the August high level, which ended the rate's summer surge. It indicates that the GBP/USD could push through this level, if there are positive fundamental news to the GBP.
Daily chart
Read More: Technical Analysis
Short sentiment returns
On Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 64% of open position volume was in short positions. It can be assumed that a portion of traders took profits during the Monday's drop.
By the middle of Tuesday's US trading, the sentiment was 70% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
Previously, the orders were 72% to buy.
On Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 64% of open position volume was in short positions. It can be assumed that a portion of traders took profits during the Monday's drop.
By the middle of Tuesday's US trading, the sentiment was 70% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
Previously, the orders were 72% to buy.