On Wednesday, the British Pound fell by 77 pips or 0.54% against the US Dollar. A breakout occurred through the lower boundary of an ascending channel pattern during Wednesday's trading session.
Economic Calendar
On Thursday, the US Consumer Price Index, US Core Consumer Price Index and the US Unemployment Claims are set to be released exactly at 12:30 GMT. Most likely, all USD asset and pair moves from 12:30 to 12:35 could be attributed to these data sets.
The rate has moved from 18.1 to 47.3 pips during the release of the CPI since January 2021, and 9.5 to 22.8 pips on the release of the US Unemployment claims since May 6.
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
Given that a breakout has occurred, bearish traders are likely to continue to drive the price lower during the following trading session. The potential target for bears will be near the 1.4060 level.However, the weekly support level at the 1.4081 area could provide support for the GBP/USD currency exchange rate within the following trading session.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD remains in the borders of the channel up pattern, which has guided it since early April. The rate is trading sideways in the borders of the pattern.In addition, note that the rate reversed its February surge just before reaching the 1.4250 level. Namely, the surge ended at the 1.4243 mark.
Daily chart
Read More: Technical Analysis
Traders set up buy orders
On Thursday, traders have been short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 75% of positions was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 88% to buy.
Previously pending orders were 60% to sell.
On Thursday, traders have been short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 75% of positions was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 88% to buy.
Previously pending orders were 60% to sell.