The GBP/USD broke the resistance of the 1.3870 level and reached the 1.3900 mark. This level started to provide resistance to the currency exchange rate.
Near term future scenarios were based upon whether the rate manages to pass the resistance of 1.3900.
Economic Calendar
On Wednesday, the US Consumer Price Index data could cause a minor move on USD assets at 13:30 GMT. The GBP/USD has moved from 8.6 to 25.8 pips on the announcement.
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
By the middle of Tuesday's European trading hours, the GBP/USD had managed to pass the resistance of the 1.3870 level and reach the 1.3900 mark. The 1.3900 level paused the rate's surge.In the case of the rate passing the resistance of the 1.3900 mark, the pair would face the 200-hour simple moving average at the 1.3930 level and afterwards the weekly R1 simple pivot point at 1.3982. On the other hand, if the resistance holds, the pair could look for support in the 55-hour SMA near 1.3835.
Hourly Chart
On the daily candle chart, the rate is retracing back down, as it consolidates after reaching the 1.4200 mark.
In the meantime, note how the surge has occurred by being pushed up by the 55-day SMA. The rate overextended its surge when it reached the 1.4200 mark and moved too far away from the SMA. Due to that reason it became overbought.
In the near term future, the rate could look for support in the 55-day simple moving average, which recently reached above the 1.3740 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 56% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell the GBP/USD pair.
Previously, 65% of orders were to buy.
On Monday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 56% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell the GBP/USD pair.
Previously, 65% of orders were to buy.