During Wednesday morning, the GBP/USD exchange rate was testing the 100-hour moving average.
Given that the rate is supported by the 55-hour SMA, it is likely that some upside potential could prevail.Economic Calendar
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Read More: 13.01-17.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to surpass the resistance provided by the 100-hour SMA. During Wednesday morning, the rate reversed south.Note that the currency pair is pressured by the 55-hour moving average, currently located at 1.3002. Thus, it is likely that some downside potential could prevail, and the pair could target the monthly S1 at 1.2936.
However, note that the exchange rate could gain support of the weekly S1 at 1.2985. If the given support holds, it is likely that the rate could go upwards within the following trading session.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Wednesday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were neutral. In the 100-pip range, 51% of orders were to sell and 49% were buy orders.
Meanwhile, trader orders were neutral. In the 100-pip range, 51% of orders were to sell and 49% were buy orders.