Bearish sentiment pressured the GBP/USD currency pair on Tuesday. As a result, the British Pound sank by 114 pips or 0.83% against the US Dollar during Tuesday's trading session.
Economic Calendar
Wednesday would start with the UK Consumer Price Index at 06:00 GMT. This event has created moves from 8.8 to 13.2 pips.
On the same day, at 18:00 GMT, the US FOMC Meeting Minutes could cause a move from 10.8 to 54.3, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 9.5 to 22.8 pips.
On Friday, the UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 GMT.
GBP/USD short-term review
The exchange rate bounced off the lower line of a descending channel pattern at 1.3725 during the Asian session on Wednesday. Most likely, buyers could drive the price higher today.However, technical indicators suggest that the currency exchange rate might edge lower within this session.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD exchange rate breached the 200- day simple moving average at 1.3776.In the near future, the currency exchange rate could trend bearish. The possible target for bearish traders will be near the 1.3600 area.
Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, traders were short, as 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 56% of positions were long.
Meanwhile, in the 100-pip range around the rate, the pending orders were 75% to buy.
On Tuesday, traders were short, as 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 56% of positions were long.
Meanwhile, in the 100-pip range around the rate, the pending orders were 75% to buy.