The surge of the GBP/USD ended at the 1.2765 level, where it tested the weekly R2 simple pivot point. The currency exchange rate failed to pass this level and began a decline.
By the middle of Wednesday's European trading hours, the pair had reached the support of a 61.80% Fibonacci retracement level at 1.2646.
Economic Calendar
There are only couple of events that could affect the GBP/USD rate.
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the UK Retail Sales data will be issued at 6:00 GMT. On the same day, Markit is going to publish PMIs survey results for the UK and the US.
GBP/USD short-term review
It is likely that the currency pair could gain support from the weekly R1 at 1.2664 and extend gains in the short run. In this case the pair could try to surpass the weekly R2 at 1.2758.Meanwhile, note that the exchange rate would have to exceed the monthly R1 at 1.2727. If the given level holds, it is likely that the rate could trade sideways in the nearest future.
Hourly Chart
On the daily candle chart, the rate broke the resistance of the 200-day simple moving average at 1.2700. In the meantime, the rate had the support of the 55 and 100-day SMAs at 1.2457 and 1.2418.
Daily chart
Read More: Technical Analysis
Traders are neutral
Since Friday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Wednesday, the sentiment was 52% short. Traders had become neutral.
Meanwhile, in the 100-pip range around the rate the orders were bearish, as 56% of pending orders were set to sell the GBP/USD.
On Wednesday, the sentiment was 52% short. Traders had become neutral.
Meanwhile, in the 100-pip range around the rate the orders were bearish, as 56% of pending orders were set to sell the GBP/USD.