The decline of the GBP/USD has reached below the 1.2900 level. Namely, the 1.2880 level was touched on Monday afternoon.
On Tuesday, the currency exchange rate found support in that level and surged back up to the 1.2900 mark, which began to provide resistance.
Economic Calendar
Main attention this week will be set on the Bank of England rate announcement. The rate statement is scheduled for Thursday 12:00 GMT. The announcement has caused immediate moves on the GBP/USD from 18.6 to 43.5 pips since February.In addition, on Tuesday there is another event scheduled that might impact the GBP/USD pair.
On Tuesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be released. The release has caused moves from 8.8 to 37.8 pips.
Meanwhile, take into account that the next week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
Read More: 04.11-08.11 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tumbled to the support level formed by the 200-hour SMA at 1.2887. During Tuesday morning, the rate was testing the given support.It is likely that the currency pair could make a reversal north in the nearest future. Note that the pair would have to surpass the resistance cluster formed by the 55- and 100-hour SMAs, as well the weekly PP and the Fibo 38.20% in the 1.2909/1.2925 range.
On the other hand, the British Pound could consolidate against the US Dollar, squeezed by the given support and resistance. Also, it is unlikely that bears could prevail in the market, and the pair could drop lower than the weekly S1 at 1.2842.
Hourly Chart
On the daily candle chart, the rate remains in the borders of a large scale ascending channel pattern. It is surging in its borders.
Meanwhile, the daily simple moving averages have been left far below the exchange rate. It is a signal that the GBP/USD is overbought. However, with the Brexit in the background, long term overbought and oversold indicators should better be ignored.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since Friday, 66% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 54% of orders were to buy and 46% were to sell.
Previously, the orders were 62% to sell.
Meanwhile, trader orders were bullish. In the 100-pip range, 54% of orders were to buy and 46% were to sell.
Previously, the orders were 62% to sell.