The release of the US Consumer Price Index caused two hours of high volatility during the mid-day of Wednesday. It was followed up by a decline.
By the middle of Thursday's trading, the rate had passed the support of the 100-hour simple moving average at 1.4078 and the weekly R1 simple pivot point at 1.4064.
Economic Calendar
On Friday, the US Retail Sales and Core Retail Sales at 12:30 GMT are bound to move the pair, as the release had moved the pair from 13.6 to 26.3 since December.
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 near term future, the rate was expected to continue to decline, as it had no technical support as low as the 200-hour simple moving average near 1.3985.On the other hand, the rate appeared to be finding support in the round exchange rate level of 1.4050. If the 1.4050 mark holds, the GBP/USD would face the technical resistance of the weekly R1 simple pivot point at 1.406 and the 55 and 100-hour simple moving averages near 1.4110 and 1.4080.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the channel up pattern has held. Namely, its upper trend line provided enough resistance for the rate to decline.Moreover, on the larger scale chart, it appears that the 1.4000 mark is set to provide support.
Daily chart
Read More: Technical Analysis
Traders are short
On Thursday, traders were short, as 69% 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 85% to buy. The orders were 53% to sell on Wednesday.
On Thursday, traders were short, as 69% 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 85% to buy. The orders were 53% to sell on Wednesday.