The GBP/USD has once again retreated to the lower trend line of the ascending wedge pattern. This time, the trend line was reached near the 1.3640 mark.
The future scenarios depended on whether or not the trend line holds.
Economic Calendar
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
From a theoretical point of view, it is likely that the currency pair could reverse north from the lower pattern line and trade upwards within the following trading session.Meanwhile, note that the pair is pressured by the 55– and 100-hour SMAs near 1.3690. If the given resistance holds, a breakout south could occur, and the rate could decline to 1.3600.
Hourly Chart
On the daily candle chart, the currency exchange rate is reaching new high levels, as the previous 2021 high level has been clearly passed.
In the meantime, note that the 55-day simple moving average was approaching the rate from below. This week, it was located near the 1.3460 level.
Daily chart
Read More: Technical Analysis
Short sentiment declines
On Thursday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 72% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to buy the GBP/USD pair.
On Thursday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 72% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to buy the GBP/USD pair.