Meanwhile, we have observed that traders were 54% just after the Bank of England announcement. Then the decline occurred. On Friday, 50% of traders were short and 50% were in long positions
Economic Calendar
There are no more notable events scheduled for this week.
GBP/USD hourly chart analysis
Next target for the decline is the combination of the weekly S3 simple pivot point at 1.2547, the 1.2550 mark and the support zone at 1.2535/1.2540. The zone marks mid-February low level range. Further below, note the February low level at 1.2519.However, in the case of a recovery of the Pound against the US Dollar, the rate is expected to face the 1.2590/1.2610 range as resistance. Higher above, the weekly S2 simple pivot point has shown to be able to impact the rate at 1.2636. The 1.2650 level acted as support on Thursday. The weekly S1 acted as support mid-week. Namely, these three levels can stop the pair, before it reaches the 1.2700 mark. Moreover, note the 50 and 100-hour simple moving averages that are descending from above.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the 50 and 100-day simple moving averages acted as support near 1.2775. However, on Friday they failed.The rate could look for support in the 200-day SMA near 1.2547.
Daily chart
Read More: Technical Analysis
Traders were short and got paid
Before the US Fed rate event, traders were 51% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 64% to buy.
After the rate announcements, traders were 54% short and orders were 65% to buy. B mid-Friday, sentiment was balance. 50% was in short and long positons. Traders have taken their profits from the short positons.
Meanwhile, pending orders in the 100-pip range around the rate were 64% to buy.
After the rate announcements, traders were 54% short and orders were 65% to buy. B mid-Friday, sentiment was balance. 50% was in short and long positons. Traders have taken their profits from the short positons.