As the rate was declining and testing the support of the previously broken upper trend line of a channel down pattern, the Federal Reserve beat down the USD by making a monetary policy statement. Namely, the supply of the USD was revealed to remain plenty. It eventually resulted in a GBP/USD surge that reached the 1.4000 mark.
The 1.4000 mark provided resistance and the pair declined. During the second half of Thursday's trading, the rate had found support in the 1.3900 level.
Economic Calendar
There are no more notable events scheduled for this week. On Friday, expect an update to the calendar section with the next week's event reviews.
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 regards to the near term future, the pair was expected to test the 1.3950 level. If the 1.3950 does not provide resistance, the rate could once again test the 1.4000 mark.On the other hand, if the two mentioned levels hold, the GBP/USD would most likely look for support in the 1.3900 level. Note that the 1.3900 was supported by the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point.
Hourly Chart
On the daily candle chart, the rate appears to be trading sideways between the 1.3800 and 1.4000 levels.
Meanwhile, the 55-day SMA had almost caught up with the rate. Previously, the SMA was capable of pushing the GBP/USD up by just approaching it by approximately 50 base points. On Tuesday, the SMA had approached the rate as close as 39 pips.
Daily chart
Read More: Technical Analysis
Sentiment is unchanged
Since Wednesday, 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy the GBP/USD pair.
Since Wednesday, 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy the GBP/USD pair.