On Tuesday, after reaching the 1.3620 level, the GBP/USD recovered. The recovery ended on Wednesday, as the rate reached the resistance of the 55-hour SMA.
By the middle of the day's GMT trading hours, the pair had bounced off the SMA and declined.
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
Given that the currency pair is pressured by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3690 area, it is likely that bears could prevail in the market. The pair could target the 1.3610 level, which provided support during the previous and this week.In the meantime, note that the exchange rate could gain support from the weekly S1 located at 1.3629. If the given level holds, the rate could trade sideways within the following trading session.
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 Wednesday, 66% 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 64% to buy the GBP/USD pair.
On Wednesday, 66% 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 64% to buy the GBP/USD pair.