On Thursday, the US quarterly Preliminary GDP data at 12:30 GMT is set to confirm or deny whether the United States have entered a recession. A recession is defined by two consecutive quarters of decline in the Gross Domestic Product.
GBP/USD short-term review
If the pair declines below 1.2555 and 1.2550, the 50 and 100-hour simple moving averages near 1.2540 might act as support to the GBP/USD currency exchange rate. Further below, take into account this week's low level zone at 1.2472/1.2480.On the other hand, a surge above the May high level zone at 1.2600/1.2640 would leave the pair without any technical resistance as high as the weekly R2 simple pivot point at 1.2715. However, note that the 1.2650 and 1.2700 levels might stop a potential surge.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed above the resistance line of the larger scale channel down pattern, which has guided the rate's decline since early February. Moreover, on Tuesday and Wednesday the pair appeared to be confirming the previous resistance as support.Daily chart
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Traders are neutral and long sentiment is gone
On Wednesday, traders were 53% bullish, as 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 55% to buy the GBP/USD.
On Thursday, the open positions were 51% long and pending orders were 58% to sell.
On Wednesday, traders were 53% bullish, as 53% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 55% to buy the GBP/USD.
On Thursday, the open positions were 51% long and pending orders were 58% to sell.