As the 55-hour SMA approached the rate from the upside, the support levels near 1.2920 were passed. The rate is continuing to move downwards.
The next target for the decline is the 62.30% Fibonacci retracement level at the 1.2865 level.
Meanwhile, note that the rate might wait up for the 55-hour simple moving average to catch up and continue to push the rate downwards.
The Federal Reserve releases US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the statement said.
"In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes," the statement said.
Bank of England's Thursday
The major event of the week will be the Bank of England rate announcement today. The rate announcement and the results of the central bank's monetary policy vote will be published at 12:00 GMT.Another notable event during this week will be the Canadian Employment data release on Friday at 13:30 GMT.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more detailed info and a chance to ask questions watch the weekly calendar analysis by clicking on the link below .
GBP/USD short term review
During the previous trading session, the currency exchange rate traded between the weekly S2 and the monthly PP to end the trading session at the 1.2932 mark. On Thursday morning, the rate passed through the support of the monthly PP at 1.2924 to trade at the 1.2904 mark.In regards to the near-term future, the British Pound will depreciate to the 62.30% Fibonacci retracement level at 1.2864. Afterward, most likely, the rate will trade sideways at 1.2850 for the rest of the trading session.
On the other hand, the British Pound could appreciate against the US Dollar to the 1.2950 level during today's Bank of England Interest Rate and the votes release at 12:00 GMT.
Hourly Chart
On the daily one can see that the 100-day SMA at 1.2900 was keeping the rate from declining further during the early hours of Thursday's trading session.
Meanwhile, note that the 55-day SMA was approaching the currency exchange rate from the bottom at the 1.2810 level. If the pair continues to decline, the 55-SMA and the weekly S3 will provide combined support at 1.2845.
Daily chart
Traders have continued to take profits from the decline of the pair throughout the week.
Meanwhile, trader set up pending orders in the 100-base point range remained neutral. 51% of trader orders for the GBP/USD were set to buy.
The traders, which were not knocked out of their positions on Monday by the sudden jump of volatility of the rate to the upside, have profited from the recent decline.