However, most price action occurred during the follow up press conference at 18:30 GMT up to 19:30 GMT. The press conference is more notable due to the Chairman of the Federal Reserve taking journalist questions. If the journalists do their job properly, they get more information out of the Chairman about the future supply and value of the USD.
In general, the Chairman said that the Fed is not thinking to do anything. It would take a lot of bad economic data for the Fed to cut interest rates. Meanwhile, potential hikes would take a lot higher than current inflation. Moreover, the Chairman expressed that inflation should decrease when the winter passes and shelter costs decrease. Namely, as people spend less for heating, inflation numbers are set to go down.
The GBP/USD reacted to the news by spiking up to the 1.2535/1.2540 range that was pierced. However, the 1.2550 level held and confirmed that the resistance range is wider. During the first half of Thursday's trading, the pair was fluctuating between the resistance zone and the support of the 50 and 100-hour simple moving averages. Economic Calendar
There is one more important event this week. On Friday, at 12:30 GMT the US Bureau of Labor Statistics will reveal the monthly employment data for the United States. The data release consists of three data sets.
First and most important is the Non-farm Employment Change that shows the number of new employed people over the month.
Secondly, the markets watch the Average Hourly Earnings monthly change. If there are less people employed, but the rest are getting paid a lot more it is still a sign of upcoming inflation.
Third and the least watched is the official Unemployment Rate. This numbers is politicized and manipulated so much that it barely reflects the real situation in the labour markets. Pure numbers like the data above are what the markets watch.
GBP/USD hourly chart analysis
A move below the moving averages is set to be slowed down by the 1.2500 and 1.2480 levels and the 200-hour simple moving average. These levels are capable of slowing down the pair, but not reversing its direction. The 1.2460 level and the range around it has shown to be capable to reverse direction of the pair. Further below, note the weekly simple pivot point at 1.2444 and the 1.2400/1.2420 range.However, in the case of a surge, the pair would have to break the 1.2535/1.2550 zone. If a surge of the Pound against the US Dollar occurs, the weekly R1 could slow down the rate at 1.2588, before the 1.2600 is reached.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the GBP/USD is bouncing around the 200-day SMA and the prior support and resistance range at 1.2505/1.2535. It can be clearly observed that the range and SMA no longer impact the rate. Fundamentals have taken over the larger scale chart, as there is ongoing zigzagging, before the establishment of future direction.Daily chart
Read More: Technical Analysis
Traders go long
On Tuesday, traders were 53% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 56% to sell.
After the Federal Reserve events, the sentiment was 55% long and orders were 60% to sell. It appears that traders have went long after Powell's comments.
Meanwhile, pending orders in the 100-pip range around the rate were 56% to sell.
After the Federal Reserve events, the sentiment was 55% long and orders were 60% to sell. It appears that traders have went long after Powell's comments.