On Tuesday, instead of reaching the pivot point at 1.2945, the GBP/USD bounced off the resistance of the 1.2920 level. This level had also kept the rate down on Monday.
On Wednesday morning, the currency exchange rate traded sideways between the mentioned resistance and the support of the 1.2880 level.
Economic Calendar
On Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published. The event could cause 11.5 to 35.9 pip moves.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement. The GBP/USD has moved from 18.9 to 68.5 pips on the announcements.
On Thursday, the Bank of England is scheduled to make a rate announcement at 11:00 GMT. All GBP traders are bound to watch this event. Since March, the event has caused moves from 40.0 to 62.1 pips.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. Note that the two last releases caused, respectively, 20 and 49 pip moves.
On Friday, minor 10.0-16.2 moves might be created by the 06:00 GMT UK Retail Sales.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
On Wednesday, the most expected to become reality scenario was that the rate would continue to trade sideways between the 1.2880 and 1.2920 level until it is approached by the 55-hour simple moving average.A following surge could then test the pivot point at 1.2945 and afterwards the 200-hour simple moving average near 1.2990.
On the other hand, as today at 18:00 GMT the Federal Reserve makes announcements, the rate could just trade sideways until the event and afterwards just react to the news that impact the strength of the USD.
Hourly Chart
On the daily candle chart, the rate was testing the resistance of the 55-day simple moving average near 1.2920. This technical level had kept the rate down throughout this week.
In the meantime, support was being provided by the 100 and 200-day SMAs near the 1.2730 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Wednesday, 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Tuesday, traders were also neutral, as 52% of volume was in long positions and 48% was in shorts.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to sell the GBP/USD pair.
Previously, the orders were 55% to sell.
On Wednesday, 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Tuesday, traders were also neutral, as 52% of volume was in long positions and 48% was in shorts.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to sell the GBP/USD pair.
Previously, the orders were 55% to sell.