On Wednesday morning, the GBP/USD currency exchange rate passed the support of the 1.3770/1.3785 zone. The zone had kept the rate from declining since the middle of Tuesday's trading.
Economic Calendar
This week, the GBP/USD could react to the Monetary Policy Report Hearing on Wednesday 15:00 GMT. The Bank of England Governor and Monetary Policy Committee members are set to testify before the Parliament Treasury Committee.
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
GBP/USD short-term review
In regards to the near term future, the currency exchange rate was expected to decline to the support of the weekly S2 simple pivot point. However, support could be provided by the 1.3700 mark or another round exchange rate level.On the other hand, a potential recovery would face the resistance of the 1.3770/1.3785 zone. Above the zone, the 55 and 100-hour simple moving averages were providing resistance at 1.3815 and 1.3825.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate declined below the support of the 55 and 200-day simple moving averages at 1.3815.Meanwhile, the 100-day SMA remains near the 1.3920 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 59% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to buy.
On Wednesday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 59% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to buy.