On June 16, the US Federal Reserve published the Federal Open Market Committee's Statement, Economic Projections and Federal Funds Rate. The main news that the markets reacted to was the revelation in the Economic Projections that the central bank could hike interest rates in 2023, as it expects an end to the coronavirus and growth of inflation.
As a result of the announcement, the GBP/USD dropped sharply. By the middle of Thursday's European trading hours, the currency exchange rate was heading to the combined support of the 1.3950 level and the weekly S3 simple pivot point at 1.3944.
Economic Calendar
On Thursday, the US Unemployment Claims could cause a move from 9.5 to 22.8 pips.
On Friday, the UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 GMT.
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
If the rate passes the support of the weekly S3 simple pivot point, the GBP/USD could look for support in the 1.3900 mark.In the case that the 1.3950 level and the pivot point at 1.3944 provide support, the pair could recover and test the resistance of the 1.4000 level and the weekly S2 simple pivot point at 1.4009.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD passed the support of the 1.4000 mark and the 55-day simple moving average.However, the 100-day simple moving average at 1.3935 managed to provide support on Thursday.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 67% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 93% to buy.
On Wednesday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 67% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 93% to buy.