In the aftermath of passing the 1.4000 mark, the GBP/USD found resistance in the 1.4010 level. On Tuesday, a retracement back down was taking place. It was spotted at mid-day that the 1.3950 mark was providing support.
Economic Calendar
On Wednesday, at 06:00 GMT, the UK Consumer Price Index is set to be published. It could cause GBP/USD moves from 6.2 to 11.6 pips.
On Friday morning, at 06:00 GMT, the UK Retail Sales could cause a move. The event has caused moves from 8.6 to 20.6 since November 2020.
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 1.3950 provides enough support for a renewal of the surge, the pair should test the 1.4000 mark, the mentioned 1.4010 level and afterwards the 1.4050 level. Note that there is no technical resistance as high as the weekly R3 simple pivot point at 1.4084.On the other hand, a decline below 1.3950 could reach for the combined support of the 1.3900 level, the 55-hour simple moving average and the weekly R1 simple pivot point.
Hourly Chart
On the daily candle chart, the rate's surge has broken the resistance of the 1.3800 mark, the 55-day simple moving average and the upper trend line of the last two month decline.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 64% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy.
On Monday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 64% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy.