The rate failed to pass the resistance of the 1.3450 level on Monday. This resulted in a decline to the support of the weekly simple pivot point at 1.3283, which caused a surge on Tuesday.
By the middle of the day's European trading hours, the surge was heading to the resistance of the 1.3400 mark, weekly R1 pivot point at 1.3430 and the mentioned 1.3450 level.
Economic Calendar
The week for UK events is set to start on Wednesday at 07:00 GMT. At that time the UK Consumer Price Index is set to be published. This event has caused moves from 9.7 to 22.2 pips on the GBP/USD since July.
On the same day, at 09:30 GMT the UK Manufacturing and Services PMIs are set to be published. This event has caused moves from 13.0 to 21.0 pips.
In addition, on Wednesday, the US Retail Sales and US Core Retail Sales could cause a move on the chart at 13:30 GMT. The rate has moved 10.3 to 25.7 pips on the announcement.
Moreover, on that day the US Flash Manufacturing and Services Purchasing Managers Indices or PMIs are set to be published at 14:45 GMT. The GBP/USD has moved from 7.8 to 35.5 pips on this publication.
The day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published. During the publication of the projections the GBP/USD has moved 68.5 pips in June and 36.4 in September.
Despite the Fed having the top event, in theory, there have been larger GBP/USD moves due to another event. Namely, the Bank of England's publication of the Official Bank Rate and Asset Purchase Facility information has caused moves from 40.0 to 73.1 pips since May. The publication will occur on Thursday at 12:00 GMT.
Also on Thursday, at 13:30 GMT the US Unemployment Claims could create a move of 13.0 to 25.8 pips.
The week for GBP/USD traders will end at 13:30 GMT on Friday with the release of the UK Retail Sales at 07:00 GMT. Expect a move from 6.4 to 16.0 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
At mid-day on Tuesday, the rate was heading up and was set to test various resistance levels. Namely, the 1.3400 mark, the weekly R1 simple pivot point at 1.3431 and the 1.3450 level could provide resistance.If the resistance levels would get passed, the pair could reach for the 1.3500 mark and afterwards the 2019 and 2020 high level at 1.3520.
On the other hand, a bounce off from the resistance levels could look for support in the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.3283. However, note that the SMAs did not manage to keep the rate up during the Monday's decline.
Hourly Chart
On the daily candle chart, the rate found support for the most recent surge in the 55-day simple moving average at the 1.3135 level. In the meantime, the rate had the additional support of the 100-day SMA near the 1.3100 level.
In addition, note that the 61.80% Fibonacci retracement level at 1.3178, which kept the rate down in October and November, did not provide support.
Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP/USD pair.
On Tuesday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP/USD pair.