The technical levels just above the 1.2300 mark eventually beat down the GBP/USD currency rate. On Tuesday morning, the rate had already reached the 1.2240 level.
Moreover, the decline in theory was expected to reach the 1.2228 level, where the S1 of the weekly simple pivot points was located at.
Economic Calendar
On Tuesday the US PPI release at 12:30 GMT could cause a move. Although, it usually causes a move around ten pips, which is considered insignificant.On Wednesday, the US Federal Reserve Meeting Minutes are set to be published at 18:00 GMT. Since February the event has caused moves from 9.2 to 22.5 base points.
On Thursday, the day will begin with the UK GDP and Manufacturing Production data being released at 08:30 GMT. The event has caused moves from 9.2 to 35.1 base points since May.
On the same day the US CPI will be released at 12:30 GMT. The event has caused moves from 14.8 to 23.0 pips.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
GBP/USD short-term review
On Tuesday morning, the rate was heading to the support of the weekly S1 of the simple pivot points.It was expected to stop at that level and trade sideways just above the 1.2230 level, as the most recent decline had a sharp angle and a consolidation should take place.
However, if the weekly S1 at 1.2228 fails to provide support and GBP/USD declines below it, there would be no technical support to the pair as low as the 1.2113 level.
Hourly Chart
On the daily candle chart, the rate once more showed that the 55-day simple moving average could be ignored. It did not hinder Tuesday's decline.
Meanwhile, the 100-day SMA was approaching the rate from above and could provide technical resistance above the 1.2400 mark.
Daily chart
Read More: Technical Analysis
Large proportion of buy orders
Since Monday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader orders were bullish. In the 100-pip range 79% of orders were to buy and 21% were to sell.
Previously, the orders were 65% to buy.
Meanwhile, trader orders were bullish. In the 100-pip range 79% of orders were to buy and 21% were to sell.
Previously, the orders were 65% to buy.