As the US Federal Reserve released the FOMC Meeting Minutes, the GBP/USD surged due to markets observing US Dollar's weakness. The event resulted in a test of the 1.3600 level's resistance.
Economic Calendar
On Thursday, the US Unemployment Claims could cause an adjustment of the USD value.
The week will end on Friday with the UK Retail Sales data at 07:00 GMT
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GBP/USD short-term review
If the pair reaches above the 1.3600 mark, the rate could test the resistance zone of early February high levels at 1.3620/1.3629. Above this zone, note the 1.3640/1.364 zone, which captures the February 10 high level. In addition, the weekly R1 simple pivot point was located at 1.3646.However, a potential decline could first look for support in the weekly simple pivot point at 1.3568, before falling to the combined support of the 50, 100 and 200-hour simple moving averages at the 1.3550 mark. Below the simple moving averages, note the February low level zone at 1.3488/1.3497. Moreover, take into account the weekly S1 simple pivot point at 1.3492 and the 1.3500 mark.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the combination of the 50 and 100-day simple moving averages is pushing the rate into the resistance of the 200-day simple moving average at 1.3620.Daily chart
Read More: Technical Analysis
Traders are short
Since Tuesday, traders were mostly bearish, as 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 73% to sell the GBP against USD.
Since Tuesday, traders were mostly bearish, as 64% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 73% to sell the GBP against USD.