Meanwhile, traders have continued to open short positions throughout the week. However, it has been spotted that they have large amounts of buy orders close by, which could be stop losses or buy to open long position orders.
Economic Calendar
On Friday, take into account that the release of the European, United Kingdom and United States Markit Manufacturing and Services Purchasing Managers Indices are set to be published and impact respectively the Euro, Pound and the US Dollar. The publications are scheduled to be done throughout the day.
GBP/USD short-term view
A breaking above 1.2550 could result in the rate testing the resistance of the weekly R1 simple pivot point at 1.2576, before the 1.2600 mark would be reached.In the meantime, a potential decline of the Pound against the US Dollar is expected to find support in the 1.2505/1.2510 range. Afterwards support is set to be provided by the combination of the 1.2450 level and the 50 and 100-hour simple moving averages. Below these levels, note the 1.2400 mark, the weekly simple pivot point at 1.2386 and the support zone at 1.2373/1.2380.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD has broken the resistance of the 200-day simple moving average. There is no technical resistance on the daily candle chart, except the prior high and low levels of August and September that could impact the rate.Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 54% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 51% to sell.
At mid-Tuesday, open positions were 61% short. However, orders were 60% to buy.
On Wednesday, positions were already 66% short and orders were 68% to buy.
On Monday, open GBP/USD positions by Swiss Foreign Exchange traders were 54% short.
Meanwhile, trader pending orders in the 100 pip range around the rate were 51% to sell.
At mid-Tuesday, open positions were 61% short. However, orders were 60% to buy.
On Wednesday, positions were already 66% short and orders were 68% to buy.
It appears that traders are continuing to open short positions in the expectations of a decline, but have their stop loss buy orders close by.