The GBP/USD pair's decline reached the support of the weekly S1 simple pivot point at 1.3628 on Tuesday morning. The pivot point provided enough support for a recovery. In the meantime, a minor channel down pattern appears to have been capturing the rate's recent decline.
Economic Calendar
On Wednesday, at 12:15 GMT the US ADP Non-Farm Employment Change could cause a minor USD move. The GBP/USD has reacted to the event with moves from 12.5 to 18.30 pips.
Later on, at 14:00 GMT the US ISM Non-Manufacturing PMI will be out. During the event, the pair has moved from 11.2 to 26.9 pips.
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT. The GBP/USD has moved from 24.2 to 70.8 base points during the time of the publication.
The top event for the GBP will occur on Thursday. At 12:00 GMT, the Bank of England Official Bank Rate will be published together with the Monetary Policy Statement. The rate has moved 26.9 to 71.8 pips on the release.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move. The rate has moved 11.7 to 18.3 pips, as the Claims are released.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT. The event has moved GBP/USD from 35.2 to 52.8 pips since June 2021.
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
A potential surge of the pair would most likely face the resistance of the upper trend line of the channel down pattern and the 55-hour simple moving average near 1.3670. Above the 1.3670 level, the 100-hour SMA might provide resistance near 1.3715.Meanwhile, a decline of the GBP/USD could look for support in the weekly S1 simple pivot point at 1.3628 and the lower trend line of the channel down pattern. In the case of the pivot point and the channel's support failing, the rate might find support first in the 1.3600 mark and afterwards the weekly S2 simple pivot point at 1.3567.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed below the support of the 55-day simple moving average, which kept the pair up for three consecutive trading sessions near 1.3720.In regards to the future, the pair could find support in the July and August low levels below the 1.3600 mark.
Daily chart
Read More: Technical Analysis
Traders close short positions
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 58% of volume was short. By the middle of Tuesday, 56% were short. Some traders had taken profits from short positions and opened long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 80% to buy. On Monday, 61% were to buy.
The orders were 74% to sell on Friday.
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 58% of volume was short. By the middle of Tuesday, 56% were short. Some traders had taken profits from short positions and opened long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 80% to buy. On Monday, 61% were to buy.
The orders were 74% to sell on Friday.