On Monday, the British Pound dropped by 54 pips or 0.42% against the US Dollar. The currency pair tested a support cluster near the 1.3880 area during the Asian session on Tuesday.
The exchange rate bounced off the 55– and 200– hour SMAs support level on Tuesday morning.
Economic Calendar
On Wednesday, all of the markets will move due to the release of the US Federal Reserve Federal Funds Rate at 18:00 GMT. The GBP/USD has moved 20.5 to 60.6 pips on the announcement since September 16.
On Thursday, at 12:30 GMT, the US Advance GDP will be released. This event has caused GBP/USD moves only from 9.6 to 17.2 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
Most likely, buyers could pressure the GBP/USD pair higher within this session.However, the upper line of a descending channel pattern could provide resistance for the currency exchange rate during the following trading session.
Hourly Chart
GBP/USD daily chart's review
Since Friday, the rate has been trading in limbo around the 55-day simple moving average. It was expected that a decline could continue after a period of consolidation.Note that the 1.4000 has been keeping the GBP/USD down since the start of March.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Monday, traders were short, as 60% 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 62% to sell. On Monday, the orders were 73% to sell.
Since Monday, traders were short, as 60% 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 62% to sell. On Monday, the orders were 73% to sell.