On Wednesday, the GBP/USD currency exchange rate retreated to the support of the previous May high levels at 1.4160/1.4170. In addition, this zone was being strengthened by the 55-hour simple moving average, which was catching up with the rate.
Economic Calendar
The rate could move due to the FOMC Meeting Minutes at 18:00 GMT. The pair has moved from 5.1 to 10.2 pips on the release.
On Friday, the UK Retail Sales MoM will be released. The pair has moved due to the release from 7.4 to 20.6 since January.
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
In the case that the rate passes the previous May high support zone at 1.4160/1.4170, the currency exchange rate could decline to the 100-hour simple moving average at 1.4110. Afterwards the pair could aim at the 1.4100 mark with the 200-hour simple moving average.If the currency pair recovers and starts a surge, it would most likely once again test the resistance of the 1.4220 level, which reversed the pair on Tuesday. A scenario in which the rate would pass the 1.4220 mark could result in the GBP/USD reaching for the 1.4250 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD remains in the borders of the channel up pattern, which has guided it since early April. The rate is testing the upper trend line of the pattern.In addition, note that the rate reversed its February surge just before reaching the 1.4250 level. Namely, the surge ended at the 1.4243 mark.
Daily chart
Read More: Technical Analysis
Sell orders are removed
On Tuesday, traders were short, as 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 72% of positions were short.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell. Previously, 80% of orders were to sell.
On Tuesday, traders were short, as 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 72% of positions were short.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell. Previously, 80% of orders were to sell.