On Wednesday morning, the GBP/USD was piercing one by one the technical support levels of the cluster of levels that was spread out from 1.2700 to 1.2675.
As the rate continued to be beat down by the weakness of the GBP caused by an increase of coronavirus measures, the rate was expected to reach even lower levels.
Economic Calendar
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 08:30 GMT Pound traders are set to watch the UK Services and Manufacturing PMIs that can cause a move from 15.6 to 25.0 pips.
On the same day, at 13:45 the US PMIs will be released. A move of 12.9 to 35.5 pips has happened during the last half year during this release.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT. The GBP/USD has barely moved during this event.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
In the near term future, the rate was set to consolidate until the 55-hour simple moving average approaches. Afterwards, the pair should continue its decline.However, the rate could be pushed down by an additional announcement of new coronavirus measures in the UK or its impact on the economy. In this case, the rate would start a decline immediately.
Any decline would have to pass the technical support of the weekly S2 simple pivot point at 1.2675. Afterwards, there would be no technical support as low as the weekly S3 simple pivot point at 1.2570.
Hourly Chart
On the daily candle chart, the rate has pierced the support of the 100 and 200-day simple moving averages. If the rate declines below them, the SMAs should start to provide resistance.
Daily chart
Read More: Technical Analysis
Traders remain long
Since Tuesday, 57% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the open positions were balanced. 50% were short and the other 50% were long. Namely, traders had gone long during the recent decline.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.
Previously, the orders were 79% to sell.
Since Tuesday, 57% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Monday, the open positions were balanced. 50% were short and the other 50% were long. Namely, traders had gone long during the recent decline.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.
Previously, the orders were 79% to sell.