After two additional attempts to pass the resistance of the 1.3380/1.3400 zone, the GBP/USD retreated to the support of the 200-hour simple moving average and the weekly simple pivot point at 1.3328.
If the 200-hour SMA continues to hold, another attempt at breaking the resistance zone could occur.
Economic Calendar
On Tuesday, the GBP/USD currency exchange rate could be impacted by the 15:00 GMT publication of the US ISM Manufacturing PMI. The pair has moved from 11.1 to 29.5 pips on the release since July.
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The GBP/USD has moved from 18.5 to 32.4 pips on the announcement.
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
The GBP/USD ended trading sideways between the simple moving averages by surging. The surge resulted in two tests of the resistance zone that is located from 1.3380 to 1.3400. The attempts to pass the resistance zone was supported by the 200-hour simple moving average.In theory, the rate should continue to bounce between the 200-hour SMA and the resistance zone until the 200-hour SMA moves higher. In this case scenario, the SMA would push the rate through the resistance zone and it could reach for the weekly R2 simple pivot point at 1.3462.
On the other hand, the SMA might fail and in this case, the rate could find some support in the 55 and 100-hour SMAs and the weekly simple pivot point at 1.3328. However, note that the two SMAs should in theory move up faster than the 200-hour SMA. If these support levels fail, the rate could reach for the weekly S1 pivot point at 1.3257.
Hourly Chart
On the daily candle chart, it can be observed that the rate has been kept down by the 1.3400 level since November 23. In the meantime, the additional support of the 55 and 100-day simple moving averages was located near 1.3050.
Daily chart
Read More: Technical Analysis
Traders change pending orders
On Tuesday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 62% of open position volume was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 79% to sell the GBP/USD pair.
On Tuesday, the orders were 55% to buy the pair.
On Tuesday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 62% of open position volume was in short positions.
Meanwhile, on Monday, in the 100-pip range around the rate the pending orders were 79% to sell the GBP/USD pair.
On Tuesday, the orders were 55% to buy the pair.