As expected, the GBP/USD traded the resistance of the monthly pivot point at 1.3028. The pair did not manage to pass this resistance and declined back to the 1.2920 level.
In the meantime, the recent bounce off from resistance revealed a new pattern on the hourly candle chart.
Economic Calendar
On Wednesday, at 06:00 GMT the UK Consumer Price Index release could cause a move from 9.8 to 22.2 base points.
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. The GBP/USD has moved from 7.4 to 11.3 pips on the publication.
On Friday, the GBP/USD currency exchange rate could be impacted by the UK and US Markit Services and Manufacturing Purchasing Managers Indices.
The UK data could cause a move from 18.5 to 25.0 pips at 08:30 GMT. Afterwards, at 13:35 GMT the US PMIs could cause a move from 8.8 to 21.2 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
From a theoretical point of view, it is likely that the currency pair could target the lower pattern line located circa 1.2870 in the nearest future. If the predetermined pattern holds, a reversal north could follow.Meanwhile, note that the exchange rate could gain support from the 55-hour moving average near 1.2940. Thus, the rate could breach the given pattern north and try to exceed the resistance formed by the monthly PP and the weekly R1 in the 1.3028/1.3049 range.
Hourly Chart
On the daily candle chart, previously the 55-day simple moving average was pierced. The GBP/USD showed that it can pass this resistance level.
In the meantime, the 100-day SMA was approaching the rate and supported the 1.2840 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Tuesday, 50% of trader open position volume on the Swiss Foreign Exchange was in long and short positions.
On Monday, 51% of volume was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to sell the GBP/USD pair.
On Tuesday, 50% of trader open position volume on the Swiss Foreign Exchange was in long and short positions.
On Monday, 51% of volume was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to sell the GBP/USD pair.