The GBP/USD currency exchange rate has reached a new 2020 high level, as on Wednesday the rate passed the 1.3520 mark.
This event is signalling that the rate could reach new highs. However, at mid-day on Wednesday, the rate bounced off the resistance of the 1.3550 level.
Economic Calendar
On Wednesday, the day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published. During the publication of the projections the GBP/USD has moved 68.5 pips in June and 36.4 in September.
Despite the Fed having the top event, in theory, there have been larger GBP/USD moves due to another event. Namely, the Bank of England's publication of the Official Bank Rate and Asset Purchase Facility information has caused moves from 40.0 to 73.1 pips since May. The publication will occur on Thursday at 12:00 GMT.
Also on Thursday, at 13:30 GMT the US Unemployment Claims could create a move of 13.0 to 25.8 pips.
The week for GBP/USD traders will end at 13:30 GMT on Friday with the release of the UK Retail Sales at 07:00 GMT. Expect a move from 6.4 to 16.0 pips.
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
During Wednesday's mid-day hours, the GBP/USD exchange rate raised to the 1.3550 level.If the predetermined level holds, it is likely that the currency pair could reverse south in the nearest future. Note that the pair could face the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly R1 in the 1.3340/1.3431 range.
If the given support area holds, the exchange rate could reverse north. Otherwise, the rate could decline to the weekly PP located at the 1.3283 mark
Hourly Chart
On the daily candle chart, the rate found support for the most recent surge in the 55-day simple moving average at the 1.3135 level. In the meantime, the rate had the additional support of the 100-day SMA near the 1.3100 level.
On Wednesday, a channel up pattern was added to the chart. The pattern represents the rate's surge that has bene occurring since October.
Daily chart
Read More: Technical Analysis
Short sentiment grows
On Tuesday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 69% of open volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell the GBP/USD pair.
On Tuesday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 69% of open volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell the GBP/USD pair.