The surge of the GBP/USD encountered the resistance of the 1.3000 level. On Tuesday morning, the rate bounced off this level and retreated to 1.2960.
In the near term future, the pair was expected to be approached by the additional support of the 55 and 100-hour simple moving averages, which could cause a surge.
Economic Calendar
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
On Friday, at 06:00 GMT, GBP pairs could move on the publication of the UK GDP data. The event has caused moves from 8.5 to 20.6 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
On Tuesday morning, the 1.3000 level proved that it can provide psychological impact that round exchange rate levels have. Namely, market participants set orders near round price levels. In the current situation, it appears that there are enough sell orders at the 1.3000 mark to push the rate down.To move higher, the pair needs additional support to push through the 1.3000 mark. The support could come in the form of the 55 and 100-hour simple moving averages, which had pushed the pair up since late Friday.
On the other hand, the 1.3000 could hold out for longer and force the pair to trade just below it.
Hourly Chart
On the daily candle chart, the 55-day simple moving average was strengthening the resistance of the 1.3000 mark.
Note that the 1.3000 level stopped the rate's surge in the middle of September.
Daily chart
Read More: Technical Analysis
Traders remain neutral
Since Friday, 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Tuesday, the sentiment was 51% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to buy the GBP/USD pair.
Previously, the orders were 61% to sell.
On Tuesday, the sentiment was 51% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to buy the GBP/USD pair.
Previously, the orders were 61% to sell.