In general, as a consolidating retracement back up to the hourly simple moving averages had removed the oversold pressure, the pair was expected to continue to decline.
Economic Calendar
US employment data sets are scheduled to be published on Friday at 13:30 GMT. GBP/USD moves from 21.7 to 51.3 pips have been caused by this event since September 2019.The week's event historical data tables have been published. Click on the headline below to read the article.
Read More: 03.02.-07.02 Event Historical Reactions
GBP/USD short-term review
During the early noon London trading hours, the GBP/USD had bounced off the resistance of the 100 and 200-hour simple moving averages. This resulted in the rate dropping below the 1.3000 level.In general, the rate was expected to once again test the support of the 1.2950 level. If this level holds, the rate could trade sideways until it would be approached by the resistance of the hourly simple moving averages.
On the other hand, in the case of the 1.2950 failing to hold, the rate would approach a 38.20% Fibonacci retracement level at 1.2918.
Hourly Chart
On the daily candle chart, the rate's decline could look for support in the 100-day SMA, which on Wednesday was located near 1.2880.
Daily chart
Read More: Technical Analysis
Traders are neutral on GBP/USD
On Wednesday, 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 57% of orders were to buy and 43% were sell orders.
The orders were 61% to buy on Tuesday.
Meanwhile, trader orders were bullish. In the 100-pip range, 57% of orders were to buy and 43% were sell orders.
The orders were 61% to buy on Tuesday.