The 100-hour SMA provided the needed support for the rate to once more test the resistance of the 1.2520 level.
By the middle of Wednesday's trading, the rate had bounced off the high level and declined back down to the support of the 55 and 100-hour SMAs and a monthly pivot point near 1.2440.
Economic Calendar
The FOMC Statement and the Federal Fund Rate data will be released at 18:00 GMT. The previous release moved the rate for 62.5 pips.
The week will end with two data releases from the UK on Thursday, September 19. Firstly, the UK Retail Sales data will be released at 8:30 GMT. Secondly, the BoE Monetary Policy Statement and the Official Bank Rate will be published at 11:00 GMT.
GBP/USD short-term review
During Wednesday's morning hours, the GBP/USD reached a support cluster at the 1.2450 level. At that level the 55-hour SMA and a monthly pivot point were located at. In the meantime, the 100-hour SMA was approaching the rate from below, near the 1.2430 level.In general, the rate was expected to trade sideways until the 100-hour SMA reaches it and forces it into resuming its surge. The surge would then again reach for the resistance of the 1.2520 level.
On the other hand, the rate might trade sideways until the announcements by the Fed and the Bank of England are made.
Hourly Chart
On the daily candle chart, the rate has reached the resistance of the 100-day simple moving average at 1.2505.
The resistance has to be passed for the rate to resume its surge, which could reach the 1.2600 level.
In the meantime, note that the 55-day SMA was providing support at the 1.2320 level together with weekly and monthly pivot points.
Daily chart
Read More: Technical Analysis
Short sentiment increases
Since Monday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Wednesday's London trading session, 60% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 62% of orders were set to buy and 38% were to sell.
Previously, 70% of trader orders were to buy.
By the middle of Wednesday's London trading session, 60% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 62% of orders were set to buy and 38% were to sell.
Previously, 70% of trader orders were to buy.