The GBP/USD reacted to the weakness of the Dollar by breaking the resistance of the weekly simple pivot point at 1.2931, the 200-hour simple moving average and the 1.2950 mark. Economic Calendar
On Thursday, the European Central Bank is set to increase its Main Refinancing Rate from 4.00% up to 4.25% at 12:15 GMT.
After the European hike, at 12:30 GMT the US Advance GDP, Unemployment Claims and the Durable Goods Orders are highly likely set to impact the financial markets via an adjustment of US Dollar's value.
On Friday, at 12:30 GMT, the US Core PCE Price Index data is set to impact the US Dollar.
GBP/USD short-term view
The ongoing surge of the Pound against the US Dollar is expected to aim at the 1.3000 mark, which is expected to act as resistance. Higher above, note the combination of the 1.3050 level and the weekly R1 simple pivot point at 1.3046.However, in the case of the US Dollar suddenly strengthening the rate could look for support in the combination of the 200-hour simple moving average and the weekly simple pivot point at 1.2931. Further below, the combination of the 50-hour SMA and the 1.2900 might stop a potential further decline of the GBP/USD currency exchange rate.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, most recently the 1.2800 mark served as support, it could be that the 1.2800/1.2850 range is capable to act as support and resistance. In the case of a broader surge, the pair could aim at the July high at 1.3150.Meanwhile, note the approaching 50 and 100-day simple moving averages. The 50-day SMA has been ignored during May and June. However, the 100-day SMA's support caused the most recent broader surge.
Daily chart
Read More: Technical Analysis
Traders are bearish
Before the FOMC, open GBP/USD positions by Swiss Foreign Exchange traders were 66% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 62% to buy.
After Fed rate hike, 64% of volume was in short positions and orders were 51% to sell.
Before the FOMC, open GBP/USD positions by Swiss Foreign Exchange traders were 66% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 62% to buy.
After Fed rate hike, 64% of volume was in short positions and orders were 51% to sell.