On Wednesday, the GBP/USD rate remained near the support levels, where it had been located on Tuesday morning. Note that the rate had made a failed attempt to surge, which was stopped by the 200-hour simple moving average.
In general, yesterday's forecast was still valid. It was dependant on what would happen at the 1.2830 level.
Pound Appreciated on UK Election News
During Monday, November 11, the British Pound appreciated 73 pips or 0.57% against the US Dollar. Note that the British Pound appreciated against other major currencies as well.
The surge was triggered by the announcement made by the Brexit Party leader Nigel Farage. Farage said that his party would not contest the 317-Conservative seats. However, the Brexit Party would focus on unseating opponents of leaving the EU – mostly, the Labour Party and the Liberal Democrats.
The action is likely to raise chances that Boris Johnson would stay the UK Prime Minister.
Economic Calendar
This week, US and UK data is set to impact the GBP/USD currency exchange rate.On Wednesday, at 13:30 GMT the US Consumer Price Index and Core Consumer Price Index are set to be published. The event has caused moves on the charts from 17.4 to 23.0 pips.
On Thursday, the UK Retail Sales will be published at 09:30 GMT. It has created moves from 11.5 to 15.7 base points.
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 9.3 to 14.4 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 10.5 to 87.4 pips. The last event was an anomaly created by more than one data set being released at the same time. Instead expect a move around 13.7 to 24.3 pips.
Meanwhile, the week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
GBP/USD short-term review
On Wednesday morning, the GBP/USD rate had pierced the support of the 100-hour simple moving average and the weekly pivot point that were located at 1.2830. This level was no longer being supported by the 55-hour SMA, as it had moved to the 1.2844 level, where it was providing resistance.If the rate passes the support levels, it would have no support as low as the 1.2800 mark, where psychological support would be provided.
Meanwhile, the rate could trade sideways until the 200-hour SMA approaches the rate and pushes it down.
Hourly Chart
On the daily candle chart, the rate is consolidating by trading sideways in the borders of a larger ascending channel pattern.
The consolidation is occurring in a low angle channel down pattern, which could guide the pair until the end of November.
Daily chart
Meanwhile, trader orders were bullish. In the 100-pip range, 68% of orders were to buy and 32% were to sell.
On Tuesday, the orders were 73% to buy.