During Wednesday, December 2, the British Pound lost 134 pips or 1.00% against the US Dollar.
It is likely that the British Pound slipped down as the post-Brexit trade deal doubts emerged. The EU negotiator said that there was no guarantee the union would add the UK to its list of approved countries for food imports.
Earlier, the EU claimed that it had not refused to add the UK to its list. The UK Prime Minister Boris Johnson told that any refusal would amount to a "blockade" of food trade between the UK and Northern Ireland.
Economic Calendar
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The GBP/USD has moved from 18.5 to 32.4 pips on the announcement.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate jumped to 1.3430. During Wednesday morning hours, the rate reversed south.During the second half of European trading hours, the currency exchange rate had passed all of the support levels from 1.3370 to 1.3328. Due to that reason, it was expected that the rate would decline. However, note that the 1.3300 round exchange rate level could provide support, as it did on November 29.
In the case of the 1.3300 level being passed, the weekly S1 simple pivot point at 1.3257 could be reached.
Hourly Chart
On the daily candle chart, note that the rate is overbought, as the 55 and 100-day simple moving averages were located near the 1.3050 level.
In the meantime, in the case of the rate continuing its large scale surge, the rate should face the resistance of the 1.3480 level, which stopped and reversed the rate's summer surge.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Tuesday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 66% of open position volume was in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 84% to buy the GBP/USD pair.
On Tuesday, the orders were 55% to buy the pair.
On Tuesday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 66% of open position volume was in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 84% to buy the GBP/USD pair.
On Tuesday, the orders were 55% to buy the pair.