The rate's second attempt to pass the resistance of the 1.2380 level failed on Tuesday. Although, another attempt was about to take place on Wednesday morning.
In general, the rate was being pushed up by the support of the 55-hour simple moving average, which strengthened the 1.2340 level. If the rate passes the 1.2380 mark, it could surge up to the pivot point at 1.2445.
Economic Calendar
This week there are couple data releases from the US that could move the GBP/USD exchange rate.
On Wednesday, September 11, the US Producer Price Index data will be released at 12:30 GMT.
On Thursday, September 12, the US Consumer Price Index data will be published at 12:30 GMT. Last data release caused a nineteen-pip move.
On Friday, September 13, the US Retail Sales data will be published at 12:30 GMT. Last time, the GBP/USD exchange rate moved for almost 19 pips.
GBP/USD short-term review
On Wednesday morning, the rate found support in the 1.2340 level and the 55-hour simple moving average. The SMA was expected to push the rate into another test of the resistance of the 1.2380 level.If the resistance at 1.2380 is broken, the rate could surge up to the pivot point that is located at 1.2445.
On the other hand, the rate might continue to trade sideways, as the markets are waiting for new Brexit related information.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average. The SMA on Tuesday began to provide support to the monthly pivot point at 1.2314.
Namely, there is no longer a barrier to the pair's surge on the daily candle chart.
Daily chart
Read More: Technical Analysis
Traders remain long
On Wednesday morning, 54% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions. Traders had been long since last week.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 51% of orders were set to sell and 49% were to buy.
The orders had not changed since Tuesday.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 51% of orders were set to sell and 49% were to buy.
The orders had not changed since Tuesday.