At midnight to Wednesday, the GBP/USD encountered and bounced off the combined resistance of the weekly S1 simple pivot point at 1.3676 and the 55-hour simple moving average at 1.3680. Afterwards, the rate began a step by step decline, which had no technical support as low as 1.3808.
Economic Calendar
On Wednesday, the top event of all macroeconomic events will occur. The US Federal Reserve Federal Open Market Committee is going to publish their Economic Projections, Statement and the Federal Funds Rate.
On Thursday, Markit Institute will publish their Purchasing Managers Indexes. The indexes are a result of survey of manufacturing and services sector managers about their outlook on their respective fields.
At 08:30 GMT on Wednesday, the UK Markit Purchasing Managers Indices for the Manufacturing and Services sector will be published. The data has caused GBP/USD volatility from 11.4 to 20.8 base points.
On Wednesday, at 11:00 GMT, the Bank of England will release to the public their Monetary Policy Summary, Official Bank Rate and Asset Purchase Facility numbers. Since February 2021, this event has caused GBP/USD moves from 28.0 to 71.8 pips.
Also on Wednesday, at 12:30 GMT, the weekly US Unemployment Claims could cause minor increases of volatility. However, for example, the range for the EUR/USD moves during the release has been from 5.4 to 11.1 base points. On average, the EUR/USD moves less than 10 points on its own, during no event environment.
The week's notable events will end with the US Markit PMI release. Namely, the US Flash Manufacturing and Services PMIs at 13:45 GMT are highly likely to cause USD moves.
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
In the case that the rate declines, the GBP/USD could look for support in the weekly S2 simple pivot points at 1.3608. Afterwards, the 1.3600 could provide support. Moreover, the rate might be supported by the previous summer low levels that are located in the 1.3605/1.3575 range.On the other hand, a potential recovery from any of the mentioned support levels would face first the 55-hour SMAs resistance, the weekly S1 at 1.3676 and afterwards the 100-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate no longer trades near the 55 and 200-day simple moving averages. The rate has clearly plummeted and could reach the July and August low levels at 1.3600.Daily chart
Read More: Technical Analysis
Traders are neutral
On Tuesday, traders were neutral, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By mid-Wednesday, the sentiment was 50% long and 50% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy.
On Tuesday, traders were neutral, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By mid-Wednesday, the sentiment was 50% long and 50% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy.