During today's morning, the GBP/USD exchange rate declined to the 1.2000 level.
It is likely, that some downside potential could prevail in the market in the nearest future, as the rate is pressured by the 55-, 100- and 200-hour SMAs, as well the weekly PP.Economic calendar
Note, that the FOMC Meeting Minutes will be published on Wednesday at 18:00 GMT. The publication of the text has since January caused moves from 9.2 to 22.5 base points on the GBP/USD charts.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to surpass the psychological level at 1.2140. During today's morning, the rate declined to the 1.2100 mark.It is unlikely, that the currency pair could extend gains due to the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2100/1.2136 range.
It is likely, that the British Pound could depreciate against the US Dollar in the nearest future. A possible downside target is the weekly S1 at the 1.2052 mark. Otherwise, the pair could trade sideways, trying to surpass the given resistance.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
Recently, the pair reversed north from the lower channel line. Thus, form a theoretical point of view, the pair could trade upwards in the short term.
However, due to the angle of the pattern the rate could trade in any direction and it would still be in consistency with the channel.
Daily chart
Read More: Technical Analysis
Traders remain long
On Tuesday, 71% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 50% of orders were set to sell and 50% were to buy.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 50% of orders were set to sell and 50% were to buy.