As a result, the GBP/USD revealed a support zone and has surged to the combined resistance of the 1.2100 mark and the 100-hour SMA. Economic Calendar
The release of the UK GDP on Friday at 07:00 GMT is bound to impact this rate from the Pounds side.
GBP/USD short-term view
A move above 1.2100 could be slowed down by the 1.2150 level, the weekly simple pivot point at 1.2173 and the 1.2200 mark, which might be strengthened by the 200-hour simple moving average.On the other hand, a resumption of the broader decline of the Pound against the US Dollar would look for support in the 1.2050 level and the 50-hour simple moving average. Further below, note the Tuesday's support zone at 1.1960/1.1975. Note that, if there would be no comments made by Jerome Powell, the rate would be below this zone. The zone might not act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the pair has bounced off the resistance zone at 1.2305/1.2455. Moreover, it has passed below the combined support of the 50-day simple moving average and the lower trend line of the channel up pattern, which had guided the pair up since late September.More recently, the 100-day simple moving average has acted as support and slowed down the sharp decline.
Next target for the decline could be the 200-day simple moving averages and the support zone at 1.1740/1.1840.
Daily chart
Read More: Technical Analysis
Traders reopen short positions
On Wednesday, traders were 53% bearish, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 57% to sell the GBP/USD.
On Tuesday, open positions were 50% to buy and to sell. Pending orders were 55% to sell.
On Wednesday, traders were 53% bearish, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 57% to sell the GBP/USD.
On Tuesday, open positions were 50% to buy and to sell. Pending orders were 55% to sell.