Yesterday, the GBP/USD exchange rate reversed north from the support formed by the weekly S1 and the monthly PP in the 1.2500 area.
During Wednesday morning, the rate was trading at 1.2600.
Economic Calendar
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
The week will end with the UK Retail Sales release at 08:30 GMT. Detailed data with moves in pips throughout the last half a year can be examined by clicking on the link below.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reversed north from the support formed by the weekly S1 and the monthly PP in the 1.2500 area. During Wednesday morning, the rate was trading at 1.2600.It is likely that the currency pair could gain support from the 55– and 100-hour SMAs, as well the weekly PP in the 1.2590 area. Thus, some upside potential could prevail in the market.
Meanwhile, note that the exchange rate would have to exceed the Fibo 61.80% at 1.2646. If the given resistance holds, it is likely that the British Pound could consolidate against the US Dollar in the short run.
Hourly Chart
On the daily candle chart, the rate has faced the resistance provided by the Fibo 61.80% at 1.2646 and the 200-day moving average near 1.2680.
In the meantime, the 55- and 100-day moving average could provide support circa 1.2440.
Daily chart
Read More: Technical Analysis
Traders are neutral on GBP/USD
On Wednesday, 50% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 49% of pending orders were set to buy the GBP/USD.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 49% of pending orders were set to buy the GBP/USD.