On Wednesday, the GBP/USD exchange rate was testing the resistance formed by the 55- and 100-hour SMAs, located circa 1.3150.
It it likely that the rate could trade sideways between the Fibo 50.00% and the monthly R2, located at 1.3196 and 1.3115 respectively.
Economic Calendar
Today, at 13:30 GMT the US CPI and Core CPI are scheduled to be published. Since July this event has caused moves from 8.2 to 23.0 pips.
On the same day, the US Federal Reserve would announce its interest rate at 19:00 GMT. The event has created moves from 21.3 to 53.8 pips.
The week is set to end with the US Retail Sales data sets on Friday at 13:30 GMT. A move from 10.5 to 87.4 pips can be expected.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 09.12-13.12 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate traded between the Fibo 50.00% and the monthly R2, located at 1.3196 and 1.3115 respectively. During Wednesday morning, the rate was testing the resistance formed by the 55– and 100-hour SMAs at 1.3150.If the given moving averages hold, it is likely that some downside potential could prevail in the market in the short run. Note that the exchange rate could gain support of the weekly PP and the 200-hour SMA at 1.3067.
However, if the monthly R2 holds, it is likely that the British Pound could consolidate against the US Dollar. Also, it is unlikely that bulls could prevail, and the pair could exceed the Fibo 50.00%.
Hourly Chart
On the daily candle chart, the rate continues to surge in the borders of a long term channel up pattern. The resistance line of the pattern was located at the 1.3600 level.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
On Wednesday, 73% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 71% of orders were sell and 29% were to buy.
Meanwhile, trader orders were set to sell. In the 100-pip range, 71% of orders were sell and 29% were to buy.