As expected, the GBP/USD passed the support of the 1.2500 level. However, the following decline was immediately stopped by the 1.2450 level, which caused a surge to the weekly R1 simple pivot point at 1.2576.
Afterwards, the rate bounced off the pivot point, and, by the middle of Thursday's GMT trading hours, the pair had retreated below the 1.2500 level.
Economic Calendar
On Thursday, all attention is expected to be set on the weekly US Unemployment Claims. During the last weeks this announcement has been revealing shocking data, as during the two week period almost ten million US workers claimed unemployment benefits. The unemployment claims were previously ignored as they had stopped causing market reactions.
GBP/USD short-term review
Note that the currency pair is pressured by the 55– and 100-hour SMAs in the 1.2550 area. Thus, some downside potential could prevail in the market, and the pair could decline below 1.2400.However, note that the exchange rate could gain support from the 200-hour SMA and the Fibo 50.00% at 1.2418. If the given support holds, it is likely that the rate could trade sideways.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the 55 and 200-day simple moving averages at 1.2610 and 1.2654.
Daily chart
Read More: Technical Analysis
Traders go short
Since the middle of Tuesday's GMT trading hours, on the Swiss Foreign Exchange 52% of all open position volume was in long positions.
On Thursday, the sentiment had become 54% short, as traders had become bearish.
On Thursday, the sentiment had become 54% short, as traders had become bearish.