During Wednesday's morning, the GBP/USD currency pair reached the upper boundary of the short-term descending channel at 1.2740.
From the theoretical perspective, it is likely, that a reversal south occurs soon. Otherwise, the pair could maintain its growth.
The British Pound appreciated against the US Dollar, following the UK Average Earnings Index data release on Tuesday at 08:30 GMT. The GBP/USD exchange currency rate gained 21 pips or 0.17% right after the release. The British Pound continued trading at the 1.2700 level against the Greenback.
Office for National Statistics released the UK Average Earnings Index data, which came out better-than-expected of 3.1% compared with forecast 2.9%.
According the official release: "Between February to April 2018 and February to April 2019 for employees in Great Britain regular pay was estimated to have increased by 3.4% in nominal terms and by 1.5% in real terms. The total pay was estimated to have increased by 3.1% in nominal terms and by 1.2% in real terms."
US data releases could move GBP/USD rate
Today, the US CPI data release will be published at 12:30 GMT. Note, that the previous release caused a fifteen-pip move.
On Friday, June 14, the US Retail Sales data will be released at 12:30 GMT. Last time, the rate made an eleven-pip move.
GBP/USD short-term review
On Tuesday, the GBP/USD exchange rate extended gains and reached the psychological level at the 1.2730 mark. During Wednesday's morning, the rate was testing the upper boundary of the short-term descending channel.From a theoretical point of view, it is expected, that a reversal south should occur within the following trading hours. In this case, the currency pair could target the support level formed by the 55– and 100-hour SMAs, as well the weekly PP at 1.2705.
However, if the given channel does not hold, it is likely, that a breakout north occurs soon. Note, that the pair has to surpass the resistance level located at the 1.2760 mark.
Hourly Chart
As apparent on the chart, the GBP/USD exchange rate has been trading sideways around the 1.2700 level since last Tuesday.
Note, that the rate is pressured by the monthly PP located at the 1.2792 mark, thus, no significant changes are expected.
Daily chart
On Wednesday, 66% of positions on the Swiss Foreign Exchange were long.
Meanwhile, trader set up pending orders in the 100-pip range were short, as 56% of orders were set to buy. Yesterday, the orders were neutral.