During Wednesday, the GBP/USD exchange rate consolidated in the 1.2550 area.
During Thursday morning hours, the rate maintained its consolidation.
Economic Calendar
This week, there are a lot of events, which could impact the GBP/USD currency exchange rate.
Today, the future of the GBP is set to be revealed. The Bank of England will make a rate announcement at 11:00 GMT. Expect a move of around 50 pips just on the announcement.
Afterwards, take a look at the US Unemployment Claims at 12:30 GMT. A notable reaction is possible, as a surprise number could cause a notable move.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate consolidated at the 1.2550 level. During Thursday morning, the rate maintained its consolidation.It is likely that some downside potential could prevail in the market, as the currency pair could be pushed down by the 55– and 100-hour SMAs near 1.2600. Note that the nearest support, formed by the Fibo 50.00% and the weekly S1, is located at 1.2420.
Meanwhile, if the exchange rate fails to decline below the 1.2520 level, it is likely that the British Pound could continue to consolidate against the US Dollar in the short term.
Hourly Chart
On the daily candle chart, on Tuesday, the rate had tested the resistance of the 200-day simple moving average, which was located at the 1.2687 level.
Note that the rate has also gained support from the 100-day simple moving average near 1.2530.
Daily chart
Read More: Technical Analysis
Swiss traders short GBP/USD
On Wednesday, 58% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 54% short.
Meanwhile, in the 100-pip range around the rate, 52% of pending orders were set to buy the GBP/USD.
On Thursday, the sentiment was 54% short.
Meanwhile, in the 100-pip range around the rate, 52% of pending orders were set to buy the GBP/USD.