On Tuesday, the GBP/USD declined and with it revealed a channel up pattern, which has guided the rate since the second part of March.
In the meantime, the rate appeared to respect the support of the 1.3800/1.3820 zone. In addition, at mid-day on Tuesday, the rate started to respect the resistance of the 55-hour simple moving average.
Economic Calendar
On Wednesday, at 19:00 GMT, the US Federal Open Markets Committee is set to publish its Meeting Minutes. The GBP/USD had the initial reaction of 5.1 to 20.0 base points.
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
In the case of a recovery of the rate, the GBP/USD would test the resistance of the 55-hour SMA at 1.3855. Afterwards, the weekly R1 at 1.3890 could provide resistance. In addition, the 1.3900 mark might keep the rate down.On the other hand, a potential decline would find support in the 100-hour SMA at 1.3834, the 1.3800/1.3820 zone and the weekly simple pivot point and the 200-hour SMA at 1.3800.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 55-day simple moving average, which kept the rate down since March 24.
The next target for the recovery could be the 1.4000 mark, which provided resistance throughout most of March.
Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, traders were short, as 57% 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 50% to sell and 50% to buy the GBP/USD pair. Namely, orders were neutral.
On Tuesday, traders were short, as 57% 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 50% to sell and 50% to buy the GBP/USD pair. Namely, orders were neutral.