The decline of the GBP/USD bounced off the support of the 1.2900 level. By the middle of Thursday's GMT trading hours, the rate had reached above the 1.3025 level.
In the future, the decline was expected to continue, as there was no support as low as 1.2840.
Economic Calendar
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
It is likely that the currency pair could gain support from the weekly S2 at 1.3007 and trade upwards in the short run. In this case the pair could face the resistance formed by the weekly and monthly S1s, as well the 100-hour SMA in the 1.3100 area.However, if the predetermined resistance holds, it is likely that the British Pound could trade sideways against the US Dollar within the following trading session.
Hourly Chart
On the daily candle chart, as speculated the pair has found support in the round 1.2900 level, which was strengthened by the technical support of the 55-day simple moving average.
Daily chart
Read More: Technical Analysis
Short sentiment continues to decline
On Wednesday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 58% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP/USD pair.
Previously, the orders were 54% to sell.
On Wednesday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 58% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP/USD pair.
Previously, the orders were 54% to sell.