On Wednesday, the GBP/USD was making attempts to pass the resistance provided by the 1.2180 level.
If the rate would manage to break this level, it could surge up to the 1.2200 level.Economic Calendar
Note, that the FOMC Meeting Minutes will be published on Wednesday at 18:00 GMT. The publication of the text has since January caused moves from 9.2 to 22.5 base points on the GBP/USD charts.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate skyrocketed to the psychological level at 1.2180. During Wednesday morning, the rate declined to the 1.2140 mark.Note, that the currency pair is supported by the 55– and 100-hour SMAs, currently located circa 1.2130. If the given support hold, the pair could reverse north and target the given psychological level.
Otherwise, it is expected, that the British Pound could depreciate against the US Dollar within the following trading session. In this case, the rate has to surpass the weekly PP and the 200-hour SMA, currently located at 1.2114 and 1.2100 respectively.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
Recently, the pair reversed north from the lower channel line. Thus, form a theoretical point of view, the pair could trade upwards in the short term.
However, due to the angle of the pattern the rate could trade in any direction and it would still be in consistency with the channel.
Daily chart
Read More: Technical Analysis
Traders remain long
On Wednesday, 72% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 52% of orders were set to sell and 48% were to buy.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 52% of orders were set to sell and 48% were to buy.