On Thursday, the publication of the US Core PCE Price Index at 13:30 GMT is most likely going to cause a USD move, as the US monetary policymakers watch this indicator.
GBP/USD short-term view
In the near term future, the rate could resume its surge, if the approaching 100-hour simple moving average provides the required support for a push higher. A potential move higher would then have to pass the 1.2700 level and the weekly R2 at 1.2724, before testing the 1.2750 and 1.2800 levels. Above these levels, note the August high at 1.2819 and the weekly R3 at 1.2832.On the other hand, a decline of the Pound against the US Dollar below the weekly R1 and the 100-hour SMA could result in the rate looking for support in the 1.2600 mark and the ascending 200-hour simple moving average. Below these levels, support is expected to be found in the 1.2555/1.2565 range, the weekly simple pivot point at 1.2554 and the 1.2550 mark.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD has broken the resistance of the 200-day simple moving average. There is no technical resistance on the daily candle chart, except the prior high and low levels of August and September that could impact the rate.Meanwhile, it was previously observed that as the rate ignored the moving average, but it had started to respect the 1.2300/1.2450 range as support.
Daily chart
Read More: Technical Analysis
Traders shorted the US GDP
On mid-Wednesday, the traders were 63% short and pending orders were 64% to sell. Traders clearly expected a drop of the rate.
After the GDP release, traders were 64% short and orders were 70% to buy. Traders were still positioned for a decline, but had close by stop losses and buy orders to open long positions.
After the GDP release, traders were 64% short and orders were 70% to buy. Traders were still positioned for a decline, but had close by stop losses and buy orders to open long positions.