On Tuesday, GBP/USD changed its direction and dropped to the support of the 55-hour simple moving average at 1.2930.
Future forecasts were based upon what would happen at the simple moving average.
Economic Calendar
This week, the GBP/USD is expected to be impacted by one event.On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT. Since April, the rate has moved from 7.4 to 14.6 pips in the five minutes following the release.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
Read More: 18.11-22.11 Event Historical Reactions
GBP/USD short-term review
By the middle of Tuesday's London trading, the GBP/USD reached the support of the 55-hour SMA at 1.2930.If the SMA manages to provide support, the rate would surge back up to the 1.2960 level, where it traded sideways on Monday.
On the other hand, if the SMA fails to hold, the rate would decline and first test the 38.20% Fibonacci retracement level at 1.2918 and afterwards the 100-hour SMA near 1.2900.
Hourly Chart
On the daily candle chart, the recent surge pierced the upper trend line of the channel down pattern, which guided the rates consolidation since the second part of October. The event signals that the pair's consolidation could be over.
Daily chart
Read More: Technical Analysis
Traders are mostly short
On Tuesday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were majorly bearish. In the 100-pip range, 76% of orders were to sell and 24% were to buy.
Meanwhile, trader orders were majorly bearish. In the 100-pip range, 76% of orders were to sell and 24% were to buy.