On Tuesday, the GBP/USD bounced off the resistance of the 1.3020 level. By the middle of Wednesday's trading, the GBP/USD had almost plummeted by 100 pips and touching the 1.2920 level.
At that level, the rate should find the support of a 38.20% Fibonacci retracement level.
Economic Calendar
During the week there are no notable events that might impact the currency exchange rate. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published. This event has caused moves from 6.2 to 16.8 pips since August.
Moreover, the 16.8 pip move was an anomaly caused by the simultaneous release of other data together with the Durable Goods orders. Without it, the range is from 6.2 to 11.5 pips.
At the same time, the US Preliminary GDP is scheduled to be published. This is the other data set that together with the Durable Goods orders caused a 16.8 pip move. Without the other data, the GDP has caused moves from 8.0 to 16.1 pips.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 24.02-28.02 Event Historical Reactions
GBP/USD short-term review
By the middle of the day's GMT hours, the GBP/USD had passed the support of the 100-hour SMA at 1.2937 and was expected to reach the 38.20% Fibo near 1.2920.If this level gets passed, the pair would have no technical support as low as 1.2858. At that level the weekly S1 simple pivot point was located at. However, the pair could find support in the 1.2900 mark, which stopped a decline at the end of last week.
On the other hand, the Fibo could stop the pair's decline. In this case, the rate is likely going to trade sideways between 1.2920 and 1.2940.
Hourly Chart
On the daily candle chart, it could be spotted that the rate had found support in the 1.2850 level on Thursday. This level could stop future declines.
Daily chart
Read More: Technical Analysis
Open position volume remains unchanged
Since Monday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bearish. In the 100-pip range, 56% of orders were to buy and 44% were sell orders.
On Tuesday, the pending trade orders were 62% to sell.
Meanwhile, trader orders were bearish. In the 100-pip range, 56% of orders were to buy and 44% were sell orders.
On Tuesday, the pending trade orders were 62% to sell.