On Tuesday, the GBP/USD was squeezed in between the resistance of the 55-hour simple moving average and the support of the 200-hour SMA. As the 55-hour SMA was pressuring the rate from above, a classic squeeze was expected.
Namely, the rate would decrease its volatility, as the SMAs approach one another, which would then result in a sudden sharp move up or down.
Economic Calendar
On Tuesday, the US Durable Goods Orders and Core Durable Goods Orders will be released at 12:30 GMT. This event has caused moves on the GBP/USD from 11.2 to 21.9 base points.
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. However, recently both of them have not caused notable moves.
The GDP has moved the GBP/USD from 9.8 to 26.8 pips since July 2019. Meanwhile, the Unemployment Claims since September 24 have caused 10.0 to 22.3 pips moves
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
Since Monday, the GBP/USD exchange rate has been consolidating in the 1.3030 area.From a theoretical point of view, it is likely that the currency pair could re-test the lower channel line circa 1.2960 in the short term. If the given channel holds, the pair could reverse north and target the 1.3100 mark.
It is likely that the currency pair could gain support from the 200-hour SMA near 1.3000 and trade upwards in the short term. In this case the pair could target the 1.3100/1.3150 range.
In the meantime, note that the exchange rate is pressured by the 55-hour SMA near 1.3040. Therefore, the rate could breach the medium-term ascending channel south and target the weekly S1 at 1.2911.
Hourly Chart
On the daily candle chart, on Friday, a channel up pattern was added. It represents the rate's mid-September and October surge.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Monday, 52% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 51% of volume was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.
On Tuesday, 51% of volume was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.