Namely, the rate declined from a resistance zone just below the 1.3950 level, as soon as it was being approached from above by the 100-hour simple moving average.
Economic Calendar
On Wednesday, at 08:30 GMT the UK Markit PMIs are set to be published.
At 13:45 GMT, on the same day, Markit is set to publish the US Manufacturing and Services PMIs.
On Thursday, all GBP pairs are set to experience volatility due to the release of the Bank of England Monetary Policy Summary and the Official Bank Rate at 11:00 GMT.
Also on Thursday, the US Final quarterly GDP and weekly Unemployment Claims are scheduled for 12:30 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 100-hour SMA manages to continue to provide resistance, the pair could decline to the support of the 1.3800 level. The 1.3800 level reversed the Federal Reserve decline. However, if the 1.3800 mark is passed, the GBP/USD would not have technical support as low as the weekly S1 simple pivot point at 1.3690.On the other hand, a potential surge above the 100-hour SMA would most likely test the resistance of the 1.3950 level. In the case of the 1.3950 being passed, the rate could return to the 1.4000 mark.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD passed the support of the 1.4000 mark and the 55-day simple moving average.Moreover, the rate has passed the support of the 100-day SMA. In addition, take into account that at the start of the week, the 100-day SMA began to provide resistance.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 70% to sell.
On Tuesday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 70% to sell.