On Wednesday morning, the weekly PP at 1.1838 and the 200-hour SMA at 1.1896 were pierced. However, after shortly trading above the 1.1950 level, the GBP/USD declined below the mentioned technical levels.
It was possible that the rate would reach for the combined support of the 55 and 100-hour simple moving averages.
Economic Calendar
On Thursday, March 26, the UK Retail Sales will be published at 9:30 GMT. The rate moved from 14.6 to 21.8 pips on the announcement. An exception to this range was the 58.2 pip move in January.
The week will end with the US Final GDP data release on Thursday at 12:30 GMT. A move from 8.1 to 52.0 pips has occurred on the rates charts since December 2018. However, the March 2019 52.0 pip move was an anomaly. The second largest move was 16.0 pips.
Meanwhile, this week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
GBP/USD short-term review
In the case of the pair passing the support of the weekly PP at 1.1838 and the 1.1800 mark, the rate could decline to the support of the 55 and 100-hour simple moving averages that on Wednesday were located near the 1.1700 mark.On the other hand, the pair might rebound and make another attempt at passing the 1.2000 level. Namely, as usual, it is an "if, then" scenario situation.
Hourly Chart
On the daily candle chart, it could be observed that the pair is finding support in the 1.1500 level, which has kept the rate up since March 18.
Daily chart
Read More: Technical Analysis
Bullish sentiment continues to increase
On Monday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions. By the middle of Tuesday's GMT trading hours, the sentiment was 68% long.
On Wednesday, the sentiment was already 70% long.
Traders were expecting a recovery of the currency exchange rate.
On Wednesday, the sentiment was already 70% long.
Traders were expecting a recovery of the currency exchange rate.