By the middle of Wednesday's European trading hours, the currency exchange rate had reached the 1.3900 mark. The 1.3900 has been keeping the rate down throughout July.
Economic Calendar
The top event of all will take place on Wednesday at 18:00 GMT. The US Federal Reserve is scheduled to make a Rate Statement. The GBP/USD has moved from 20.5 to 70.8 pips on the announcement.
On Thursday, the US Advance GDP at 12:30 GMT is bound to move the US Dollar's value. The pair has moved 9.6 to 21.8 pips on the release since April 29, 2020. In addition, at the same time the US Unemployment Claims could cause volatility.
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
If the rate once again bounces off the July high level at 1.3900, a potential decline could first look for support in the weekly R1 simple pivot point and the 55-hour simple moving average at 1.3835. If these levels are passed, the rate might find support in the 100 and 200-hour simple moving averages.Meanwhile, a potential surge above the 1.3900 mark would immediately find resistance in the weekly R2 simple pivot point at 1.3919. Above this level, the 1.3950 and the 1.4000 levels could provide resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the exchange rate has passed the resistance of the 1.3800 level. Meanwhile, note that last week the 1.3600 level provided support.In the near term future, the pair could reach the 100-day simple moving average near 1.3900 and, afterwards, the 1.4000 mark together with the 55-day SMA.
However, a potential decline could once again look for support in the 1.3600 mark before reaching for the January low level near the 1.3500 level.
Daily chart
Read More: Technical Analysis
Traders remain bearish
Since Tuesday, traders were 60% bearish, as 60% of traders open positions volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 75% to sell.
Since Tuesday, traders were 60% bearish, as 60% of traders open positions volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 75% to sell.