The GBP/USD passed the support of the channel up pattern. However, as the rate approached the 55-hour simple moving average and the 1.3710 level, a recovery began. By the start of Tuesday's European trading hours, the pair had almost reached the 1.3800 mark.
Economic Calendar
On Wednesday morning, at 06:00 GMT, the UK Consumer Price Index will be published. Later on, at 12:30 GMT, the Canadian Consumer Price Index is scheduled to be released. The GBP/USD has moved from 8.8 to 21.8 pips due to the data.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims might cause a minor USD move. The claims have moved the rate from 10.4 to 18.3 base points since September 16.
On Friday morning, the UK Retail Sales could impact the value of the Pound at 06:00 GMT. Moves from 11.2 to 15.6 have occurred on the release since May.
At 08:30 GMT, the UK Manufacturing and Services PMIs are going to impact the value of the GBP. 11.4 to 15.7 point move could be caused.
At 13:45 GMT, the week's notable events will end with the publication of the US Manufacturing and Services PMIs. The GBP/USD has moved has moved from 8.5 to 24.2 pips allegedly due to the release since May 21.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
If the rate finds resistance at the 1.3800 mark, it could either trade sideways below it or decline. A potential decline might look for support in the 55-hour simple moving average. Below the 55-hour SMA, the pair might find support in the 100-hour SMA near 1.3700 and the weekly simple pivot point exactly at 1.3700.A move above the 1.3800 level could aim at the resistance of the weekly R1 simple pivot point at 1.3830. Above the pivot point, resistance would be found at the 1.3900 mark, which is strengthened by the weekly R2 simple pivot point.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has passed the resistance of the 55-day simple moving average near 1.3735. Meanwhile, the 100 and 200-day SMAs were providing resistance at 1.3818 and 1.3846.Daily chart
Read More: Technical Analysis
Traders set up sell orders
On Monday, traders were short, as 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 58% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 90% to sell.
On Monday, traders were short, as 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 58% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 90% to sell.