Meanwhile, it has been observed that traders remain long, despite the pair continuing to book new low levels.
Economic Calendar
At 13:45 GMT, all of financial markets could move due to the publication of the United States Manufacturing and Services sectors Purchasing Managers Indices.
On Thursday, watch the publication of the US Advance quarterly GDP publication at 12:30 GMT. Note that the United States GDP data is published over the span of a quarter by giving updated data each month. First release has the most impact and is called the Preliminary. It is followed by the Advance GDP release, which is expected on Thursday. Afterwards, the GDP publications end with the Final GDP, and the cycle starts again with a new quarter.
Also on Thursday, watch the US Pending Home Sales data publication at 14:00 GMT. In the recent months, this previously ignored data set has started to impact the US Dollar.
On Friday, one of the top US data releases will occur. The Core Personal Consumption Expenditure will reveal more detailed impact of inflation on the US consumer. US monetary policy makers have been observing this index instead of the Consumer Price Index to decide upon their policy.
GBP/USD hourly chart analysis
A move below 1.2300 could result in the rate looking for support in the weekly S2 simple pivot point at 1.2280, the 1.2250 level and afterwards the combination of the 1.2200 mark and the weekly S3 simple pivot point at 1.2193.In the case of a recovery of the Pound against the US Dollar, the rate is expected to encounter resistance in the 1.2380 and 1.2400 levels, as these levels have acted as support and resistance during the recent past. Above these levels, the 1.2410/1.2425 range could turn into resistance.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the GBP/USD is below the 1.2380/1.2430 range that previously acted as support. On Tuesday, it appeared to be acting as resistance to the ongoing retracement back up.If the rate resumes the broader decline, watch the line that connects the low levels. It could act as support. Meanwhile, the 1.2300, 1.2200 levels will act as support, before the 1.2040/1.2090 range is reached.
Daily chart
Read More: Technical Analysis
Traders stick to long positions
On Tuesday, traders were 70% bullish, as that proportion of all open position volume on Swiss Foreign Exchange was in long positions.
Meanwhile, pending orders in the 100-pip range around the rate were 62% to sell.
During Thursday's trading, 62% of traders had went long and orders were 64% short.
Meanwhile, pending orders in the 100-pip range around the rate were 62% to sell.
During Thursday's trading, 62% of traders had went long and orders were 64% short.
It appears that the rate keeps going lower, but traders add more long positions in the expectations of a retracement up.