By the middle of the day's European trading hours, the currency exchange rate had retraced back up and found resistance in a pivot point at 1.3020.
Economic Calendar
On some calendars, on Wednesday, the ADP Non-Farm Employment Change is shown as a high impact data set. Note that our analysts ignore it, as, for example, on the GBP/USD charts it has caused moves from 11.8 to 28.4 pips since September.On the same day, the US ISM Non-Manufacturing PMI is scheduled to be released at 15:00 GMT. This event has caused GBP/USD moves from 20.6 to 37.8 pips.
Last but not least, US employment data sets are scheduled to be published on Friday at 13:30 GMT. GBP/USD moves from 21.7 to 51.3 pips have been caused by this event since September 2019.
The week's event historical data tables have been published. Click on the headline below to read the article.
Read More: 03.02.-07.02 Event Historical Reactions
GBP/USD short-term review
During Tuesday morning, the rate tried to surpass the monthly S1 at 1.3021.If the given resistance level holds, it is likely that the British Pound could continue to depreciate against the US Dollar. In this case the currency pair could gain support of the Fibo 38.20% and the weekly S2 in the 1.2900 area. However, if the exchange rate fails to surpass the 1.2950 level, it is likely that the British Pound could consolidate against the Greenback in the short run
Meanwhile, it is unlikely that the rate would exceed the 1.3070 area due to the resistance formed by the 55-, 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the rate's decline could look for support in the 100-day SMA, which on Tuesday was located near 1.2875.
Daily chart
Read More: Technical Analysis
Sentiment becomes neutral
On Tuesday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 61% of orders were to buy and 39% were sell orders.
The orders were 51% to sell on Monday.
Meanwhile, trader orders were bullish. In the 100-pip range, 61% of orders were to buy and 39% were sell orders.
The orders were 51% to sell on Monday.