This week, the top event will be the FOMC Meeting Minutes release on Wednesday at 19:00 GMT. The minutes are a protocol of the last Federal Reserve monetary policy committee meeting. They could provide more information on how the US Dollar rate setters make their decisions.
In addition, on Thursday, the UK Manufacturing and Services sector Purchasing Managers Index release at 09:30 GMT could impact the rate through an adjustment of the Pound's value.
Meanwhile, some impact could be created by the US Manufacturing and Services PMIs at 14:45 GMT.
GBP/USD hourly chart analysis
An extension of the ongoing decline could eventually reach the support range at 1.2535/1.2540. Below this range, note the weekly S1 simple pivot point at 1.2526.On the other hand, a recovery of the Pound against the US Dollar is expected to face the 50, 100 and 200-hour simple moving averages, the weekly simple pivot point and the 1.2590/1.2610 range. However, if these levels fail to hold down, the 1.2630 level could once again act as resistance, as it did on Monday morning.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the rate is above the 100 and 200-day simple moving averages. The pair appears to have been reversed by the 100-day SMA.In regards to resistance, the 50-day simple moving average is acting as resistance near 1.2680. This moving average acted as support during the second part of January.
Daily chart
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Traders are long
On Monday, traders were 59% long, as that proportion of all open positon volume on Swiss Foreign Exchange was in bullish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 55% to buy.
Meanwhile, pending orders in the 100-pip range around the rate were 55% to buy.