During Monday morning, the GBP/USD exchange rate was trading at the weekly S1 at 1.2985.
Note that the exchange rate is pressured by the 55-, 100- and 200-hour SMA. Thus, some downside potential could prevail.Economic Calendar
Today, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate declined to the weekly S1 at 1.2985. During Tuesday morning, the rate surpassed the given level.Note that the currency pair is pressured by the 55-hour moving average, currently located 1.3022. In this case the pair would have to surpass the support cluster formed by the weekly S2, the monthly S1 and the Fibo 38.20% in the 1.2899/1.2936.
On the other hand, the exchange rate could consolidate near the weekly S1 in the short term. Also, it is unlikely that bulls could prevail in the market, and the rate could exceed the 100-hour SMA, currently located at 1.3052.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Tuesday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were almost bearish. In the 100-pip range, 75% of orders were to sell and 25% were buy orders.
Meanwhile, trader orders were almost bearish. In the 100-pip range, 75% of orders were to sell and 25% were buy orders.