The GBP/USD exchange rate surpassed the psychological level at 1.2950. During Wednesday morning, the rate was testing the resistance provided by the 200-hour SMA and the weekly PP.
If the given resistance holds, the rate is expected to trade downwards within the following trading session.
Economic Calendar
This week's data is available. Click on the link below to see the historical data tables with the reactions to the events.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. The GBP/USD has moved from 8.2 to 19.4 pips because of the release.
On Friday, the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the pair since September 2019 from 10.5 to 87.4 base points.
Note that the 87.4 pips most likely was caused by another aspect. The second largest move has been 15.5 pips.
Read More: 10.02-14.02 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate raised to the 1.960 level. During Wednesday morning, the rate was testing the resistance formed by the weekly PP and the 200-hour SMA at 1.2990.If the given resistance holds, it is likely that a reversal south could occur. In this case the currency pair could gain support of the 55– and 100-hour SMAs, as well the Fibo 38.20% in the 1.2930 area.
If the given support level does not hold, it is likely that the British Pound could continue to appreciate against the US Dollar in the short run. In this case the rate would have to surpass the monthly S1 at 1.3021.
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 1.2900.
Daily chart
Read More: Technical Analysis
Traders remain neutral on GBP/USD
On Wednesday, 53% 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, 50% of orders were to buy and 50% were sell orders.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to buy and 50% were sell orders.