On August 23, the data caused a decline, which pierced below a cluster of support levels near 1.2740. A decline down to a support zone at 1.2620 followed over the span of next 3:30 hours. Economic Calendar
On Friday, the top event of the week is set to take place, as the head of the Federal Reserve, Chairman Powell, is set to give a speech on monetary policy at the Jackson Hole Symposium. Last year's speech was the catalyst for the September drop of the financial markets, as the USD gained value.
GBP/USD short-term view
A rebound from the support zone could be slowed down by the 1.2700 mark and the weekly simple pivot point at 1.2710. Namely, there is no observable resistance in the 80 pip range above the support of 1.2620.However, if the decline goes below the 1.2620 level, the 1.2600 mark could act as support, before the rate reaches the weekly S2 at 1.2540.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the 1.2800 mark and the 50-day simple moving average. The levels turned into resistance at the start of the month. A move above the resistance could aim at the 1.3000 mark.Previously, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving average. A passing below these support levels could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are bullish on GBP
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 55% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to sell.
On Wednesday, positions were 58% long and orders were 53% to buy.
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 55% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 52% to sell.
On Wednesday, positions were 58% long and orders were 53% to buy.