Despite the support of the 55-hour SMA forcing the rate into testing the 1.2750 level, the rate eventually declined.
On Tuesday, the rate had reached back below the 1.2650 exchange rate level.
Economic Calendar
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday.
On Friday, some might watch the 06:00 release of UK GDP and Manufacturing Production. This event could cause a move of GBP/USD from 11.9 to 29.8 base points.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate failed to exceed the 1.2750 level. During Tuesday morning, the rate was testing the support formed by the 100-hour SMA and the Fibo 61.80% at 1.2646.If the given support level holds, it is likely that a reversal north could occur in the nearest future, and the currency pair could re-test the 1.2750 level. Meanwhile, note that the pair would have to surpass the 55-hour SMA near 1.2690.
If the given moving average holds, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the pair could decline below the 200-hour SMA near 1.2520.
Hourly Chart
On the daily candle chart, the currency exchange rate has passed the resistance of the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Short sentiment grows
On Monday, 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By mid-Tuesday, 63% of positions were short.
Meanwhile, in the 100-pip range around the rate, 52% of pending orders were set to sell the GBP/USD.
Previously, 60% of orders were to buy.
By mid-Tuesday, 63% of positions were short.
Meanwhile, in the 100-pip range around the rate, 52% of pending orders were set to sell the GBP/USD.
Previously, 60% of orders were to buy.