The decline of the GBP/USD eventually stopped on Wednesday. Namely, the rate found support in the 1.3415 level and retraced back up to the weekly S3 simple pivot point at 1.3463. Up to early hours of Thursday's trading, the pair fluctuated sideways in the 1.3415/1.3463 zone.
Economic Calendar
On Thursday, at 12:30 GMT the US GDP, the US weekly Unemployment Claims could also impact the USD. The GDP has caused moves from 10.9 to 17.9 pips. The Claims have moved the GBP/USD from 6.6 to 12.2 points.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results. The GBP/USD moves from 11.5 to 21.1 points on the release.
GBP/USD short-term review
In theory, the rate should continue to decline, as it has no technical or historical price support levels close by. However, take into account that round exchange rate levels like the 1.3400, 1.3350 and 1.3300 could provide support and stop a decline.On the other hand, the GBP/USD can be considered oversold, as it has left far above it the hourly simple moving averages. The most close by SMA was the 55-hour SMA at the 1.3530 level. Note that a potential recovery to the SMA would face the resistance of the weekly S3 simple pivot point at 1.3463.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the summer low levels. Note that the zone was passed in a one, clear, large move. Note that the rate has not been this low since December 2020.Future support on the larger scale could be provided by round exchange rate levels.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Wednesday, traders were long, as 58% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 62% long.
Meanwhile, on Thursday, in the 100-pip range around the rate the pending orders were 56% to buy. The orders were 74% to buy on Wednesday.
On Wednesday, traders were long, as 58% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 62% long.
Meanwhile, on Thursday, in the 100-pip range around the rate the pending orders were 56% to buy. The orders were 74% to buy on Wednesday.