Meanwhile, it was noted that most traders were long since Monday. On Wednesday data indicated taht profits had been taken.
Economic Calendar
Notable events for this week are over. The CPI has set the tone for a USD decline.
GBP/USD hourly chart analysis
A move above 1.2700 is expected to be slowed down by the combination of the weekly R3 simple pivot point at 1.2745 and the 1.2750 level. Higher above, note the 1.2800 mark.In the case of a decline of the Pound against the US Dollar, the rate will look for support in the 1.2620 level, before reaching the combination of the 1.2600 mark and the weekly R1 at 1.2597.
Hourly Chart
GBP/USD daily candle chart analysis
Quoting prior analysis: "On the daily candle chart, the change in fundamentals is expressed by the rate breaking out of the channel down pattern. The pattern represented the decline that occurred as the Dollar strengthened throughout the last months. Data was being released which indicated that the US monetary policy makers cannot cut rates. Latest events show that it can still be done.However, the 50 and 100-day simple moving averages are still acting as resistance near 1.2600/1.2630. These levels have to be passed for the pair to establish a new trend. It is highly likely that the resolution to the situation will occur after the UK events are over."
On Monday, we could clearly observe a smaller scale channel up pattern that can be drawn by connecting the April low with the recent May low level. By mid-Wednesday the pattern had continued to hold and the 50, 100 and 200 day moving averages were passed.
Daily chart
Read More: Technical Analysis
Traders book profits
On Monday, traders were 59% long, as that proportion of all open position volume on Swiss Foreign Exchange was in bullish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 83% to sell.
On Wednesday, traders had already booked profits from the surge and switched to the bearish side by being 54% short in the expectations of a retracement downwards. In addition, pending orders were 52% to sell.
Meanwhile, pending orders in the 100-pip range around the rate were 83% to sell.
On Wednesday, traders had already booked profits from the surge and switched to the bearish side by being 54% short in the expectations of a retracement downwards. In addition, pending orders were 52% to sell.