At mid-day on Tuesday, the GBP/USD reached below the 1.3650 level. Due to that reason the rate could decline even further, as a round exchange rate level has been passed.
Economic Calendar
On Wednesday, the top event of all macroeconomic events will occur. The US Federal Reserve Federal Open Market Committee is going to publish their Economic Projections, Statement and the Federal Funds Rate.
On Thursday, Markit Institute will publish their Purchasing Managers Indexes. The indexes are a result of survey of manufacturing and services sector managers about their outlook on their respective fields.
At 08:30 GMT on Wednesday, the UK Markit Purchasing Managers Indices for the Manufacturing and Services sector will be published. The data has caused GBP/USD volatility from 11.4 to 20.8 base points.
On Wednesday, at 11:00 GMT, the Bank of England will release to the public their Monetary Policy Summary, Official Bank Rate and Asset Purchase Facility numbers. Since February 2021, this event has caused GBP/USD moves from 28.0 to 71.8 pips.
Also on Wednesday, at 12:30 GMT, the weekly US Unemployment Claims could cause minor increases of volatility. However, for example, the range for the EUR/USD moves during the release has been from 5.4 to 11.1 base points. On average, the EUR/USD moves less than 10 points on its own, during no event environment.
The week's notable events will end with the US Markit PMI release. Namely, the US Flash Manufacturing and Services PMIs at 13:45 GMT are highly likely to cause USD moves.
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
A potential further decline of the rate could look for support in the weekly S2 simple pivot point at 1.3608. Below the pivot point, the rate could look for support in the 1.3600 round exchange rate.On the other hand, a recovery of the pair could look for resistance in the weekly S1 simple pivot point at 1.3676 and the 55-hour simple moving average at 1.3700.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate no longer trades near the 55 and 200-day simple moving averages. The rate has clearly plummeted and could reach the July and August low levels at 1.3600.Daily chart
Read More: Technical Analysis
Traders are neutral
On Tuesday, traders were neutral, as 53% 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 60% to buy.
On Tuesday, traders were neutral, as 53% 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 60% to buy.