The GBP/USD has passed the support of the zone that kept it up since March 10. On Tuesday morning, the pair reached the support of the weekly S1 at 1.3813.
In the meantime, it was spotted that the 55-hour SMA and the resistance of the weekly simple pivot point caused the most recent decline, which pushed through the mentioned support zone.
Economic Calendar
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on the GBP/USD from 10.3 to 26.3 base points, as it has done since October 16, 2020.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The GBP/USD has moved from 18.9 to 36.4 base points since November 5, 2020 on the announcement.
At 12:00 GMT on Thursday, the Bank of England is bound to make a rate statement and reveal its monetary policy statement. A move from 23.6 to 73.1 pips has occurred due to this event since August 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
In regards to the near term future, the rate is highly likely going to consolidate by trading sideways above the weekly S1 simple pivot point or retracing back up until the hourly simple moving averages catch up with the rate.Meanwhile, it was spotted on Tuesday that since March 11 the GBP/USD has been trading in the borders of a channel down pattern. In the case of the weekly S1 not holding, the rate could test the pattern's lower trend line near 1.3800.
Hourly Chart
On the daily candle chart, the rate appears to be trading sideways between the 1.3800 and 1.4000 levels.
Meanwhile, the 55-day SMA had almost caught up with the rate. Previously, the SMA was capable of pushing the GBP/USD up by just approaching it by approximately 50 base points. On Tuesday, the SMA had approached the rate as close as 39 pips.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since last week's Wednesday, 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to buy the GBP/USD pair.
Since last week's Wednesday, 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to buy the GBP/USD pair.