Despite passing the resistance of the zone above the 1.4220 level, the GBP/USD did not follow up with a large surge. The rate encountered resistance in the weekly R1 simple pivot point at 1.4246 and the 1.4250 level.
By the middle of Tuesday's trading, the pair had retreated to the combined support of the 200-hour SMA and the weekly simple pivot point at 1.4169.
Economic Calendar
There is one major notable event to watch this week. The US Employment data sets on Friday at 12:30 GMT are most likely going to impact the GBP/USD currency exchange rate.
Namely, the release of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate have caused GBP/USD moves from 22.0 to 76.4 pips since January.
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 the rate passes below the support of the 200-hour SMA and the pivot point at 1.4169, the rate could decline as low as the weekly S1 at 1.4119. Below the S1, the 1.4100 mark could provide support.On the other hand, the rate could recover. In this case scenario the GBP/USD would face the previously passed resistance of the 55-hour SMA, the zone above 1.4220 and the 1.4150 level together with the weekly R1 simple pivot point.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD remains in the borders of the channel up pattern, which has guided it since early April. The rate is trading sideways in the borders of the pattern.In addition, note that the rate reversed its February surge just before reaching the 1.4250 level. Namely, the surge ended at the 1.4243 mark. On Tuesday, this level provided resistance.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Tuesday, traders were short, as 74% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, traders were short, as 74% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Previously, the positions were 71% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to buy.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to buy.