On Wednesday, the GBP/USD was expected to be impacted by the Brexit summit occurring in the EU. Namely, Theresa May is meeting with the heads of the EU.
Due to that reason both the chart and trader sentiment is neutral, as the pair trades sideways and open short and long positions are balanced.
On Wednesday morning, the UK GDP and Manufacturing Production were released. They caused a 14 pip bounce upwards that was followed by a move down.
The full report of the event will be available in the near future in the Fundamental Analysis section. Meanwhile, watch the live cover in the link below.
Watch on YouTube: UK GDP and Manufacturing Production
Federal Reserve and ECB incoming
This week data releases start on Wednesday. On that day the calendar is full of events that have impacted various currencies in the past.At 11:45 GMT all attention will be given to the ECB. At that time the ECB Main Refinancing Rate and Monetary Policy Statement will be published.
Although, note that these European Central Bank announcements do not create the moves on the EUR pairs. They are caused by the ECB Press Conference, during which the President of the ECB reveals new information by answering questions. The press conference starts at 12:30 GMT.
Meanwhile, exactly at 12:30 GMT USD pairs will be impacted by the publication of the US Consumer Price Index data. This can cause a move of up to 20 pips on USD pairs.
Wednesday will end with an above all fundamental event. The Federal Reserve Federal Open Market Committee will publish their Meeting Minutes.
In the publication the Fed will officially announced their future plans for US monetary policy.
That will be all on Wednesday. On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All of these events will be covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
Click Here: Dukascopy Webinars
GBP/USD short term review
Yesterday, the currency exchange rate traded between the simple moving averages to end the session at 1.3000. On Wednesday morning, the rate was supported by the 55-hour simple moving average to be located at the 1.3077 mark.In regards to the near-term future, most likely, the rate will trade sideways to stay between the 36.10% Fibo at the 1.3162 mark and the bottom boundary of the medium pattern line at the 1.3000 level.
However, today's fundamental news could push the British Pound to depreciate against the US Dollar to the weekly S1 at the 1.2952 mark.
Hourly Chart
On the daily chart the rate also has dropped below technical significance levels. Due to that event the closest support levels are located at 1.3000.
At that level the lower trend line of the long term ascending channel together with the 200-day simple moving average are located at.
Although, on Tuesday it was spotted that the 200-day SMA is moving downwards to the weekly S1 at 1.2950. In addition, the 100-day SMA was approaching that level.
Daily chart
Read More: Technical Analysis
Swiss traders remain neutral
Since Monday, the total open position volume proportion at the Swiss Foreign Exchange was 51% long.
Meanwhile, the pending orders in the 100-pip range from the rate were bearish. Namely, 63% of the orders were set to sell.
The orders previously were neutral like the open position. It indicates that in the case of a downwards move the short to medium term oriented traders would sell.
Since Monday, the total open position volume proportion at the Swiss Foreign Exchange was 51% long.
Meanwhile, the pending orders in the 100-pip range from the rate were bearish. Namely, 63% of the orders were set to sell.
The orders previously were neutral like the open position. It indicates that in the case of a downwards move the short to medium term oriented traders would sell.