On Tuesday, the GBP/USD declined below the hourly simple moving averages and the weekly pivot point. As a result of the decline, the rate had no technical support as low as the 1.2780 level
However, note that the pair might find psychological support in the 1.2850 and 1.2800 levels.
Economic Calendar
The pair could be slightly impacted by the US publications on Wednesday.At 13:30 GMT, the US Durable Goods Orders, Core Durable Goods Orders and Preliminary GDP are scheduled to be released.
In the meantime, the week's reaction tables have been published. Take a look at the 25.11-29.11 Event Historical Reactions publication.
Read More: 25.11-29.11 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate failed to breach the short-term ascending channel north. During Tuesday morning, the rate reversed south.From a theoretical point of view, it is likely that the British Pound could decline against the Greenback in the nearest future. In this case, the currency pair could reach the 1.2820/1.2840 area.
On the other hand, the British Pound could consolidate against the US Dollar in the 1.2860 area within the following trading session. Also, it is unlikely that the exchange rate could breach the given channel north, as it is pressured by the 55-, 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the rate is approaching the support of a large scale channel up pattern.
Daily chart
Read More: Technical Analysis
Traders are mostly short
On Tuesday, 66% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to buy. In the 100-pip range, 57% of orders were to buy and 43% were to sell.
Meanwhile, trader orders were set to buy. In the 100-pip range, 57% of orders were to buy and 43% were to sell.