As forecast, the GBP/USD has declined. During the early hours of Thursday's London trading session the GBP/USD currency exchange rate had reached support levels near 1.2300.
If the rate would manage to pass the technical levels near 1.2300 and the psychological support of the round level, it could decline as low as the 1.2200 mark without finding any support.
Economic Calendar
On Thursday, the US Final GDP will be published at 12:30 GMT. This event has caused moves on the GBP/USD from 8.1 to 52.00 pips since June 2018.
Note that during the last two releases the pair moved the least and the most 8.1 and 52.0 pips.
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the GBP/USD moved from 6.5 to 15.1 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate dropped to the psychological level at 1.2350. During Thursday morning, the rate was testing the support level—the monthly R1 at 1.2314.If the given support level holds, it is likely that a reversal north could occur in the nearest future. However, it is unlikely that the British Pound could exceed 1.2392 against the US Dollar due to the resistance level—the weekly S1.
If the given support level does not hold, it is likely that the currency pair could continue to trade downwards in the short term. A possible downside target is the psychological level at 1.2250.
Hourly Chart
On the daily candle chart, the rate has reached the support of the 55-day simple moving average, which is strengthening the support of the 1.2300 level.
Meanwhile, the 100-day SMA remained above the rate, near the 1.2450 mark.
Daily chart
Read More: Technical Analysis
Swiss traders are shorting GBP/USD
Since the middle of previous Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment increased to 62%. Namely, 62% of open position volume was in short positions.
Meanwhile, trader orders were mostly to buy. In the 100-pip range 80% of orders were to buy. Previously, the orders were neutral. 51% was to buy and 49% to sell.
It can be assumed that the short traders had close by stop losses and take profits. Moreover, buy to open long position orders were also present.
Since the middle of previous Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment increased to 62%. Namely, 62% of open position volume was in short positions.
Meanwhile, trader orders were mostly to buy. In the 100-pip range 80% of orders were to buy. Previously, the orders were neutral. 51% was to buy and 49% to sell.
It can be assumed that the short traders had close by stop losses and take profits. Moreover, buy to open long position orders were also present.