The GBP/USD failed to pass the combined resistance of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 1.4120/1.4138 zone.
On Tuesday, the rate had retreated to the support zone of the June low levels.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Retail Sales and US Producers Price Indices are expected to be released. The Retail Sales have caused moves from 14.0 to 22.6 pips since January. The PPI has moved the GBP/USD from 8.5 to 22.8 pips during this year.
Wednesday would start with the UK Consumer Price Index at 06:00 GMT. This event has created moves from 8.8 to 13.2 pips.
On the same day, the top event of the week would occur. At 18:00 GMT, the US Federal Funds Rate and Fed Statement could cause a move from 20.9 to 60.6, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 9.5 to 22.8 pips.
The UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 GMT.
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
If the rate passes the support of the June low levels, it would most likely reach the support of the weekly S1 simple pivot point at 1.4062. Below it, the 1.4050 mark could provide support.On the other hand, a potential surge would have to once again test the 1.4120/1.4138 zone with the hourly simple moving averages and the weekly simple pivot point.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD has broken out of the channel up pattern, which guided it since April.A potential target for the larger scale decline could be the 1.4000 level, which provided resistance and support in March, April and May. In addition, the 1.4000 mark is about to be strengthened by the 55-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders close short positions
On Tuesday, traders have been short, as 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 71% of positions was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to buy.
On Tuesday, traders have been short, as 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, 71% of positions was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to buy.