On Tuesday, the GBP/USD currency exchange rate managed to pass the resistance of the 1.3600 mark. However, almost immediately resistance was provided by the 1.3620 level. The resistance held and a minor decline occurred.
By the start of Tuesday's US trading hours the pair had retraced to the 100-hour simple moving average near 1.3560.
Economic Calendar
The top data set of the week will be released on Wednesday at 13:30 GMT. At that time, the US Consumer Price Index and Consumer Price Index are set to be published. The rate has moved from 23.5 to 47.8 points on the release.
On Thursday, at 13:30 GMT, the US Producers Price Index and Core Producers Price Index data sets are scheduled to be published. At the same time, the US weekly Unemployment Claims could cause a minor impact on the USD.
The PPI has caused GBP/USD moves from 8.4 to 13.1 pips. Meanwhile, the claims have moved the rate 8.5 to 19.1 pips. Note that quite often the claim release occurs together with other data.
The week will end with the US Retail Sales and Core Retail Sales on Friday at 13:30 GMT. The pair has moved from 10.4 to 29.6 pips.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the pair passes below the support of the 100-hour simple moving average, a potential decline could follow. The decline might look for support in the weekly simple pivot point at 1.3542 and the 200-hour simple moving average near 1.3540.On the other hand, a recovery of the GBP against the USD might aim at the 1.3600 and 1.3620 levels, before reaching the weekly R1 simple pivot point at 1.3650.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has broken the upper trend line of the channel down pattern. It indicates that the decline, which occurred since June, is over.Meanwhile, note that on January 11, the 100-day simple moving average acted as support at 1.3555.
Daily chart
Read More: Technical Analysis
Short sentiment grows
Since Thursday, traders were bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Since Thursday, traders were bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the proportion changed to 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP against USD.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP against USD.