At mid-day on Tuesday, the GBP/USD currency exchange rate passed the resistance of the 1.3500 mark and shortly fluctuated above this level. Afterwards, the pair retraced to the 1.3480 mark.
Economic Calendar
On Tuesday, the US ISM Manufacturing Purchasing Managers Index release at 15:00 GMT could cause USD moves.
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be published. The event might cause minor USD volatility.
On Thursday, the Bank of England will release its Monetary Policy Summary at 12:00 GMT. Expect GBP volatility, as the bank already started to hike interest rates in December.
The day will end with the US ISM Services PMI, which might cause minor volatility.
On Friday, the US is going to publish employment data at 13:30 GMT.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the currency exchange rate continues to decline, it could look for support in the weekly simple pivot point at 1.3443 and the 50 and 100-hour simple moving averages near 1.3430. Further below, there is no support as low as the January low levels near 1.3370.Meanwhile, a potential surge would have to pass the resistance of the 1.3500 mark, before the rate reaches the weekly R1 simple pivot point at 1.3528.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate appears to be ignoring technical levels, as the 50-day SMA did not manage to act as support or cause a decline and was easily passed twice.Daily chart
Read More: Technical Analysis
Traders are short
Since Monday, traders were mostly bearish, as 59% 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 sell the GBP against USD.
Since Monday, traders were mostly bearish, as 59% 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 sell the GBP against USD.