The 200– hour simple moving average pressured the GBP/USD currency pair on Monday. As a result, the Pound Sterling declined by 44 pips or 0.31% against the US Dollar.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Core Retail Sales and US Retail Sales are expected to be released. The Retail Sales have caused moves from 9.4 to 19.3 pips since January. The RS has moved the EUR/USD from 9.4 to 19.4 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, at 18:00 GMT, the US FOMC Meeting Minutes could cause a move from 10.8 to 54.3, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 9.5 to 22.8 pips.
On Friday, the UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 GMT.
GBP/USD short-term review
Everything being equal, the exchange rate could continue to decline in a descending channel pattern during the following trading session. The potential target for sellers will be near the 1.3780 area.However, the weekly support level at 1.3811 could provide support for the currency exchange rate in the shorter term.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD exchange rate reversed from a support level near the 200- day simple moving average at 1.3776.In the near future, the currency exchange rate could trend bullish. The possible target for bullish traders will be near the 1.4100 area.
Daily chart
Read More: Technical Analysis
Traders are bearish
Monday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 56% of positions were short.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy.
Monday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 56% of positions were short.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy.