On Wednesday, the GBP/USD passed the support of the 200-hour SMA, which kept it from declining since the middle of Tuesday. This event signalled that a decline of the pair is most likely.
Although, by the middle of Wednesday's London trading hours, the pair's decline was stopped by the support of the 1.3100 level.Economic Calendar
On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.However, the last release caused moves that are not large, but still worth mentioning. For example, the GBP/USD moved 12.1 pips.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the GPB/USD has moved from 21.7 to 51.3 pips on the release.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 06.01-10.01 Event Historical Reactions
GBP/USD short-term review
By the middle of Thursday's London trading hours, the GBP/USD had declined below the support of the hourly simple moving averages and the weekly pivot point.The passing of the support did not result in a continuation of the decline, as it was stopped by the support of the 1.3100 level. If the rate falls below the 1.3100 level, in theory it should decline down to the technical support of the weekly S1 pivot point at the 1.3000 level.
On the other hand, the 1.3050 level could provide psychological support to the currency pair.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders become neutral
On Wednesday, 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 57% of orders were to buy and 43% were sell orders. Previously, the orders were 57% to sell.
Meanwhile, trader orders were bullish. In the 100-pip range, 57% of orders were to buy and 43% were sell orders. Previously, the orders were 57% to sell.