The combined resistance of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point have forced the GBP/USD outside the borders of the rising wedge pattern.
However, the breaking of the pattern's supporting trend line did not result in a sharp move down.
Economic Calendar
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 11.8 to 38.4 pips.
At 12:00 GMT on Thursday, the Bank of England is set to announce its official bank rate. The GBP/USD has moved from 23.6 to 73.1 pips on the announcement.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 9.6 to 14.9 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The GBP/USD has moved 18.5 to 24.2 pips since September.
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
As the rate has passed the support of the rising wedge pattern, in theory it should decline. However, take into account that the 1.3660 level has been providing the rate with support since January 29.If the 1.3660 level provides support, the rate could retrace back up to the combined resistance of the weekly simple pivot point at 1.3694 and the 55, 100 and 200-hour simple moving averages at 1.37000.
On the other hand, in the case of the 1.3660 mark failing to provide support, the rate should aim first at the 1.3640 level and afterwards the 1.3629 level, where the weekly S1 simple weekly pivot point was located at.
Hourly Chart
On the daily candle chart, the pair appears to be consolidating by trading sideways around the 1.3700 level. The sideways trading could continue until a fundamental event causes a drop or surge.
In the meantime, note that the 55-day simple moving average was approaching the rate from below. This SMA has been capable of pushing the rate up. It could approach the sideways trading rate and push it up.
Daily chart
Read More: Technical Analysis
Traders are mostly short
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.
On Monday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.