The GBP/USD fulfilled the first scenario described on Monday, as it broke the resistance of the 55 and 100-hour simple moving averages and jumped to the 1.3830 level and the weekly R1 simple pivot point at 1.3831.
By the middle of Tuesday's trading hours, the pair had bounced off the 1.3830 mark and retreated to the 100-hour SMA at 1.3785.
Economic Calendar
On Wednesday, at 12:30 GMT, the US Durable Goods Orders and Core Durable Goods Orders change data will be published. The rate has moved only 7.9 to 17.9 pips due to the release since May.
At 12:30 GMT, on Thursday, the US Advance GDP is expected to impact the value of the US Dollar. In addition, the US Unemployment Claims could also slightly impact the USD. The GDP has moved the GBP/USD from 9.6 to 21.8 pips, and the Claims from 12.1 to 18.3 base points.
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
If the pair continues to decline, it would look for support in the mentioned 100-hour SMA near 1.3785. Below the SMA, support could be provided by the 55 and 200-hour simple moving averages and the weekly simple pivot point at the 1.3766/1.3773 range.On the other hand, a potential surge would once again test the resistance of the 1.3830 mark and the weekly R1 simple pivot point.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has pierced the resistance of the 100-day simple moving average. However, the 200-day SMA still provides resistance and strengthens the 1.3850 mark.Meanwhile, the 55-day SMA appears to have started to provide support at the 1.3725 level.
Daily chart
Read More: Technical Analysis
Short sentiment changes
Since Friday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment changed, as 63% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to sell. The orders were 52% to buy, on Monday.
Since Friday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment changed, as 63% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to sell. The orders were 52% to buy, on Monday.