The GBP/USD increased its gains and reached the 1.2900 level. The 1.2900 was tested three times before a decline began on Tuesday.
However, by the middle of the day's GMT trading hours, the decline was stopped by the 1.2850 level.
Economic Calendar
Notable macroeconomic events are set to start with the biggest and most important of them all, the Federal Reserve is scheduled to make a Rate Statement and Rate Announcement on Wednesday, at 18:00 GMT.
On Thursday, pay attention to the US Advance GDP and the weekly US Unemployment Claims that should be published at 12:30 GMT.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tested the weekly R1 at 1.2893. During Tuesday morning, the rate reversed south.It is likely that the currency pair could gain support from the 55-hour moving average near 1.2820 and re-test the given resistance level.
If the predetermined resistance holds, it is likely that the British Pound could consolidate against the US Dollar in the short run. Otherwise, it is likely that the pair could target the 1.2950 level.
Hourly Chart
On the daily candle chart, the rate has pierced the resistance of the channel up pattern. However, if the high level of July 9 is used to set the resistance line of the pattern, it can be observed that the line has held. Namely, the recent bounce off can be used to draw the pattern more precisely.
In the meantime, there are no additional support levels close by on the daily candle chart.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 64% short.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 52% of pending orders were set to buy the GBP/USD.
The orders had declined since Monday, as previously 59% were to buy the pair.
On Monday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 64% short.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 52% of pending orders were set to buy the GBP/USD.
The orders had declined since Monday, as previously 59% were to buy the pair.