The decline of the GBP/USD continued throughout Monday. Moreover, on Tuesday morning, the currency exchange rate pierced the 1.2750 level and shortly touched the 1.2714 level.
In the meantime, it was spotted that the rate faced the resistance of the monthly S2 simple pivot point at 1.2835 level.
Economic Calendar
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 08:30 GMT Pound traders are set to watch the UK Services and Manufacturing PMIs that can cause a move from 15.6 to 25.0 pips.
On the same day, at 13:45 the US PMIs will be released. A move of 12.9 to 35.5 pips has happened during the last half year during this release.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT. The GBP/USD has barely moved during this event.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
The GBP/USD exchange rate has revealed a medium-term descending channel.From a theoretical perspective, it is likely that some upside potential could prevail in the market, as the currency pair should target the upper channel line circa 1.2980. Note that the pair would have to exceed the resistance formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2900 area.
In the meantime, note that the exchange rate remains under pressure of the monthly S2 at 1.2835. If the given resistance level holds, it is likely that the rate could trade downwards along the lower channel line.
Hourly Chart
On the daily candle chart, the rate has gained the support of the 100 and 200-day simple moving averages at 1.2720.
Daily chart
Read More: Technical Analysis
Traders go long
On Tuesday, 57% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the open positions were balanced. 50% were short and the other 50% were long. Namely, traders had gone long during the recent decline.
Meanwhile, in the 100-pip range around the rate the pending orders were 79% to sell the GBP/USD pair.
Previously, the orders were 58% to buy. These orders were executed.
On Tuesday, 57% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the open positions were balanced. 50% were short and the other 50% were long. Namely, traders had gone long during the recent decline.
Meanwhile, in the 100-pip range around the rate the pending orders were 79% to sell the GBP/USD pair.
Previously, the orders were 58% to buy. These orders were executed.