On Tuesday morning, the GBP/USD currency exchange rate passed the 100-hour simple moving average's resistance. The resistance had caused a retreat back down to eh 55-hour SMA and monthly pivot point near 1.2830 on Monday.
In the near term future, the rate was expected to aim at the resistance of the weekly simple pivot point at 1.2945.
Economic Calendar
During the week, noteworthy events start on Wednesday, 06:00 GMT, at that time, the United Kingdom Consumer Price Index year on year change is set to be published. During the last six months this event has caused moves from 10.0 to 16.2 base points.
On the same day, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published. The event could cause 11.5 to 35.9 pip moves.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement. The GBP/USD has moved from 18.9 to 68.5 pips on the announcements.
On Thursday, the Bank of England is scheduled to make a rate announcement at 11:00 GMT. All GBP traders are bound to watch this event. Since March, the event has caused moves from 40.0 to 62.1 pips.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. Note that the two last releases caused, respectively, 20 and 49 pip moves.
On Friday, minor 10.0-16.2 moves might be created by the 06:00 GMT UK Retail Sales.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 55-hour moving average near 1.2840 and trade upwards in the short run. A possible upside target is the 200-hour SMA near 1.3030.Meanwhile, note that the exchange rate would have to exceed the weekly PP at 1.2945. If the given resistance level holds, it is possible that the rate could trade sideways in the nearest future.
Hourly Chart
On the daily candle chart, the rate was testing the resistance of the 55-day simple moving average near 1.2920.
In the meantime, support was being provided by the 100 and 200-day SMAs near the 1.2730 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, traders were neutral, as 52% of volume was in long positions and 48% was in shorts.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
Previously, the orders were 74% to sell.
On Tuesday, traders were neutral, as 52% of volume was in long positions and 48% was in shorts.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
Previously, the orders were 74% to sell.