On Wednesday morning, the GBP/USD passed the support of the 1.2450 level and the 55-hour simple moving average near 1.2440.
In the near term future, the rate was expected to test the 100 and 200-hour SMA support at 1.2400 before declining to a weekly pivot point at 1.2374.
Economic Calendar
This week starts with the US Advance GDP on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers of a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
On Friday, the US ISM Manufacturing PMI is scheduled to be published at 14:00 GMT.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reversed south from the weekly R1 at 1.2500. During Wednesday morning, the rate broke the Fibo 50.00% at 1.2418.Given that the currency pair is pressured by the 55-hour SMA near 1.2440, it is likely that some downside potential could prevail. In this case the pair could decline to the monthly PP at 1.2345.
However, note that the rate could gain support from the 100– and 200-hour SMAs near 1.2400 and reverse north in the short term. In this case the rate could re-test the weekly R1.
Hourly Chart
On the daily candle chart, the pair bounced off the resistance of the 55-day simple moving average at 1.2500. The SMA is expected to continue to provide resistance.
Daily chart
Read More: Technical Analysis
Long sentiment increases
Since the middle of Monday's GMT trading hours, the sentiment on the Swiss Foreign Exchange was 57% long.
Namely, 57% of open GBP/USD position volume was in long positions.
On Wednesday, more people went long and/or closed short positions, as 60% of open position volume was long.
Namely, 57% of open GBP/USD position volume was in long positions.
On Wednesday, more people went long and/or closed short positions, as 60% of open position volume was long.