At mid-day on Tuesday, the GBP/USD currency exchange rate broke the lower trend line of the channel up pattern, which had guided the rate since the middle of August. In the near term future, the pair was expected to reach for the support of the 1.3770/1.3785 zone.
Economic Calendar
This week, the GBP/USD could react to the Monetary Policy Report Hearing on Wednesday 15:00 GMT. The Bank of England Governor and Monetary Policy Committee members are set to testify before the Parliament Treasury Committee.
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
GBP/USD short-term review
If the 1.3770/1.3785 support zone reverses the rate's decline, the GBP/USD could aim at the resistance of the 100-hour simple moving average at 1.3823, the weekly simple pivot point at 1.3833 and the 55-hour simple moving average at 1.3844. Note that the SMAs could move in closer to the pivot point.On the other hand, a decline below the support zone would have no technical support as low as the weekly simple pivot point at 1.3672. However, take into account that the 1.3700 level could provide support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate declined below the support of the 55 and 200-day simple moving averages at 1.3815.Meanwhile, the 100-day SMA remains near the 1.3920 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 59% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to buy.
On Monday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 59% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to buy.