On Tuesday, the GBP/USD reached the 1.3200 level, which it managed to pierce. Namely, for a short period of time the rate traded above the 1.3200 level.
In addition, take into account that a channel down pattern has been spotted, connect the December high and low levels to draw it.Economic Calendar
This week, data releases will start on Tuesday at 15:00 GMT. The US ISM Non-Manufacturing PMI will be released at that time. This event has caused moves from 8.8 to 37.8 pips on the GBP/USD.On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused moves that are not large, but still worth mentioning. For example, the GBP/USD moved 12.1 pips.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the GPB/USD has moved from 21.7 to 51.3 pips on the release.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 06.01-10.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reached the 1.3180 mark. During Tuesday morning, the rate was testing the upper boundary of the medium-term descending channel.From a theoretical point of view, it is likely that a reversal south could occur in the nearest future. In this case the currency pair would have to surpass the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3096/1.3155 area.
On the other hand, the exchange rate could continue to test the upper channel line. It is unlikely that a breakout north could occur due to the resistance formed by the Fibo 50.00% at 1.3196.
Hourly Chart
On the daily candle chart, the December pattern can be observed better.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the 55-day simple moving average near 1.3000 and the trend line.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Monday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 54% of orders were to sell and 46% were buy orders.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 54% of orders were to sell and 46% were buy orders.
Previously, the orders were 66% to sell.