The announcement of a new coronavirus vaccine occurred, as the rate reached the 1.3400 level. The event caused a surge of the USD, which means that the GBP/USD rate declined. The decline stopped near the 1.3265 level.
By the middle of Tuesday's GMT trading hours, the rate had managed to recover to the 1.3380 level, which provided resistance and caused a decline.
Economic Calendar
Another day to watch the Economic calendars will be Wednesday. At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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
At the start of US trading hours, the GBP/USD currency exchange rate was being kept up by the support of the 100-hour simple moving average. If this level holds and causes a surge, the rate would first test the resistance of the 55-hour SMA at 1.3320 and the weekly R1 simple pivot point at 1.3344.On the other hand, if the 100-hour SMA would be passed, the pair would aim at the support of the weekly PP and the 200-hour SMA. These technical supports were located at 1.3255 and 1.3245.
Hourly Chart
On the daily candle chart, the rate broke the upper trend line of the channel up pattern, which guided the rate since late September.
In the meantime, the daily simple moving averages were located at the 1.3000 mark. They signal that the rate is overbought.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the sentiment became 59% short. On Tuesday, the sentiment was 60% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 56% to buy the GBP/USD pair.
Since Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the sentiment became 59% short. On Tuesday, the sentiment was 60% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 56% to buy the GBP/USD pair.