As expected, the GBP/USD reached down to the hourly simple moving averages. On Tuesday morning, the GBP/USD had reached the 100-hour SMA at 1.2390.
The near term future depended on what will happen at the SMA. Either a decline down to 1.2360 could take place or a recovery.
Economic Calendar
On Wednesday, September 18, the UK CPI data will be published at 8:30 GMT. Since March, the given released has moved the GBP/USD rate from 13.6 to 23.1 pips.
Also, on Wednesday the FOMC Statement and the Federal Fund Rate data will be released at 18:00 GMT. The previous release moved the rate for 62.5 pips.
The week will end with two data releases from the UK on Thursday, September 19. Firstly, the UK Retail Sales data will be released at 8:30 GMT. Secondly, the BoE Monetary Policy Statement and the Official Bank Rate will be published at 11:00 GMT.
GBP/USD short-term review
During Monday, the GBP/USD exchange rate depreciated slightly against the US Dollar. During today's morning, the rate was testing the support provided by the 100-hour SMA at 1.2393.If the given moving average holds, it is likely that the currency pair could extend gains in the short term. However, note that the pair has to surpass the 55-hour SMA and the monthly R2, located at 1.2438 and 1.2459 respectively.
If the given moving average does not hold, it is likely that the British Pound could continue to decline against the Greenback. Note that the rate could get support of the 200-hour moving average at 1.2357.
Hourly Chart
On the daily candle chart, the rate has reached the resistance of the 100-day simple moving average at 1.2515.
The resistance has to be passed for the rate to resume its surge, which could reach the 1.2600 level.
In the meantime, note that the 55-day SMA was providing support at the 1.2320 level together with weekly and monthly pivot points. Daily chart
Read More: Technical Analysis
Traders remain short
Since Monday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 70% of orders were set to buy and 30% were to sell.
Previously, 54% of trader orders were to buy.
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 70% of orders were set to buy and 30% were to sell.
Previously, 54% of trader orders were to buy.