On Tuesday morning, the GBP/USD reached the weekly R1 simple pivot point at 1.4092 and by the middle of the day, it began to pierce through it.
In the case of the pivot point failing, the rate could reach for the weekly R2 pivot point at 1.4168. However, the 1.4100 and 1.4150 exchange rate levels might provide resistance.
Economic Calendar
This week, the US Preliminary GDP will be published on Thursday at 13:30 GMT. The rate has moved from 11.5 to 16.8 pips.
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 afternoon, the GBP/USD exchange rate has been testing the weekly R1 at 1.4092.It is likely that the currency pair could gain support from the 55-hour moving average near 1.4030. Thus, some upside potential could prevail in the market. In this case the pair could target the weekly R2 at 1.4168.
In the meantime, if the predetermined resistance level holds, the exchange rate could bounce off to the support area formed by the 100– and 200-hour SMAs, as well the weekly PP in the 1.3920/1.3975 range.
Hourly Chart
On the daily candle chart, the supporting trend line of the previous pattern has been left unmoved. Meanwhile, the resistance line has been adjusted to the April and September high levels. It has revealed a large scale channel up pattern, in the borders of which the rate has been since March.
Meanwhile, note that the rate could eventually test the resistance of the 2018 high level at 1.4377.
Daily chart
Read More: Technical Analysis
Short positions remain intact
Since Monday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders appear to be waiting for a retracement back down.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy the GBP/USD pair.
Since Monday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders appear to be waiting for a retracement back down.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy the GBP/USD pair.