Initially, the rate was highly volatile and declined, as additional 65 billion Pounds would be poured into the economy. However, the central bank afterwards stated that it would still stick to rate hikes. Additional stimulus is set to force the BoE to hike interest rates more than previously expected. This realization caused a surge of the Pound and weakening of the US Dollar.
During late Wednesday's trading, the GBP/USD encountered resistance in the 1.0900 level and started a decline. On Thursday morning, the pair was finding support in the 50-hour simple moving average near 1.0780. Economic Calendar
On Friday, at 12:30 GMT the Core Personal Consumption Expenditure Price Index is bound to make an impact, as the head of the Federal Reserve Jerome Powell revealed last week that he is watching this index as a measure for inflation not the Consumer Price Index.
GBP/USD short-term view
A move below 1.0780 could find support in the 1.0700, 1.0600 and 1.0500 levels, before the pair reaches the Monday's low level at 1.0330.On the other hand, a surge of the Pound against the US Dollar is set to face the resistance of the 1.0900 level, before approaching 1.1000, the weekly simple pivot point at 1.1049 and the 200-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the 2022 channel down pattern has been broken to the downside.Daily chart
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Long sentiment decreases
On Wednesday, traders were bullish, as 63% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 65% to sell the GBP/USD.
On Thursday, the positions were 60% long and pending orders were 52% to sell.
On Wednesday, traders were bullish, as 63% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 65% to sell the GBP/USD.
On Thursday, the positions were 60% long and pending orders were 52% to sell.