The GBP/USD currency exchange rate has reached the December high level zone at 1.3277/1.3289. At mid-day on Wednesday, the rate appeared to have been retracing down after encountering resistance.
The pair was expected to reach the combined support of the weekly simple pivot point at 1.3243 and the 50, 100 and 200-hour simple moving averages near 1.3230.
Economic Calendar
Top event of the month is scheduled for 19:00 GMT on Wednesday. At that time, the US Federal Funds Rate, FOMC Statement and Economic Projections are going to be published. The USD is expected to be highly volatile.
At 12:00 GMT on Thursday, the Bank of England will publish its Monetary Policy Summary together with the Official Bank Rate and Asset Purchase Facility. Namely, the future of the supply of the GBP is set to be released.
The week's notable events will end with the weekly US Unemployment Claims at 13:30 GMT and the US PMIs at 14:45 GMT. These events have rarely caused notable USD moves.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
A potential move below the weekly simple pivot point and the 50, 100 and 200-hour simple moving averages at 1.3230 might result in a decline to the supporting trend line, which connects the December low levels, near 1.3210. Further below, the 1.3200 mark and the weekly S1 simple pivot point at 1.3196 could act as support.However, a surge would have to pass the 1.3277/1.3289 zone, before aiming at the 1.3300 mark and the weekly R1 simple pivot point at 1.3324.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern. Note the lower trend line of the pattern near 1.3150. Most recently, the currency pair bounced off the trend line.Daily chart
Read More: Technical Analysis
Long sentiment grows
On Tuesday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP against USD.
On Wednesday, the positions were 69% long and the pending orders were 57% to sell.
On Tuesday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP against USD.
On Wednesday, the positions were 69% long and the pending orders were 57% to sell.