By the middle of Tuesday's GMT trading, the GBP/USD had recovered to the 1.3625 level, where the pair encountered the resistance of the 100-hour simple moving average.
In the near term future, it appeared that the pair could get squeezed in between the resistance of the 100-hour SMA and the support of the 55 and 200-hour SMAs.
Economic Calendar
This week, UK data releases start on Wednesday at 07:00 GMT. At that time, the UK Consumer Price Index is scheduled to be published. This event has caused GBP/USD moves from 9.7 to 22.2.
On Thursday, at 13:30 GMT, a minor move could be caused by the weekly US Unemployment Claims. This event has caused GBP/USD moves from 8.8 to 45.7 pips since December 17.
However, note that the 45.7 pip move in December 23 was an anomaly caused by other events not the Unemployment Claims. Without the 45.7 pips move, the range is 8.8 to 12.7 pips.
On Friday morning, at 07:00 GMT the UK Retail Sales could cause a move from 6.4 to 16.0 base points.
On the same day at 09:30 GMT, the UK Manufacturing and Services PMIs could cause a move from 13.0 to 18.7 pips.
The Friday will end with the US Manufacturing and Services PMIs at 14:45 GMT. The GBP/USD has moved from 7.8 to 35.5 pips on the release.
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 mid-day on Tuesday, the GBP/USD had bounced off the resistance of the 100-hour SMA and was expected to test the support of the 55 and 200-hour SMAs.In the case of the 100-hour simple moving average being passed, the rate would have no resistance as high as the 1.3700 mark, which has kept the pair down throughout January.
On the other hand, if the support of the 55 and 200-hour simple moving averages is passed, the rate would immediately find support in the weekly simple pivot point at 1.3584. If the pivot point fails, the rate would reach for the Monday low level at 1.3520.
Hourly Chart
On the daily candle chart, it can be observed that previously the 1.3700 level strengthened the resistance of the large scale channel up pattern.
In regards to the future, due to the angle of the resistance of the pattern, the rate still has room for a surge. However, a decline to the 55- day SMA is likely, as the rate had done so each time after reaching the upper trend line.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Monday, 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 65% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair. Previously, the orders were 82% to buy.
On Tuesday, the sentiment was 65% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair. Previously, the orders were 82% to buy.