The GBP/USD has been declining in a broad channel down pattern since January 13. Meanwhile, the rate has made sharper moves down in a junior pattern since January 20. Future forecasts were based upon whether the junior pattern holds.
Economic Calendar
Note that the market participants were expecting the US Federal Reserve announcements on Wednesday at 19:00 GMT.
GBP/USD short-term review
A move above the pattern's upper trend line could find resistance in the weekly S1 simple pivot point at 1.3505, the 1.3500 mark and the 50-hour SMA close by. If the pair passes above these levels, there would be no technical resistance as high as the 1.3550 level, where the 100-hour simple moving average was located at.On the other hand, a decline could look for support in the 1.3440 mark, as this level showed support during this week. A move below the 1.3440 mark would encounter the lower trend line of the large scale decline capturing channel down pattern.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the resistance of the 200-day simple moving average has caused a decline, which is approaching the 50-day simple moving average near 1.3420. In addition, note that in September, the 1.3412 level acted as support.Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, traders were mostly bearish, as 63% 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 69% to buy the GBP against USD.
On Tuesday, traders were mostly bearish, as 63% 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 69% to buy the GBP against USD.