Since Tuesday, the GBP/USD exchange rate has been testing the resistance level located at 1.2760.
In general, the given resistance level could be passed, as soon as the 55-hour SMA pushes the rate through it.
Economic Calendar
This week, there will be UK macroeconomic data releases, which are expected to impact the GBP/USD through the adjustments of the GBP value.
Today, at 12:30 GMT the US Retail Sales could impact the rate through the value of the USD. Namely, since May this event has caused moves on the GBP/USD from 10.5 to 28.9 base points.
On Thursday, the UK Retail Sales are set to be published at 08:30 GMT. This data release has caused adjustments of the GBP/USD rate from 11.5 to 24.5 pips.
Meanwhile, take into account that next week there will be other events, which are expected to cause reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to surpass the resistance level at 1.2760. During Wednesday morning, the rate was still testing the given resistance.It is unlikely that some downside potential could prevail in the market, as the currency pair is supported by the 55– and 100-hour SMAs, currently located at 1.2661 and 1.2581 respectively.
If the given resistance holds, it is likely that the British Pound could continue to trade sideways against the Greenback in the short run. Otherwise, it is likely that bulls could prevail in the market. A possible upside target is the resistance level formed by the monthly R2 and the Fibo 38.20% at 1.2918.
Hourly Chart
On the daily candle chart, the surge was stopped by the 200-day simple moving average at the 1.2715 level. The SMA is expected to continue to provide resistance.
Meanwhile, the 100-day SMA was providing support at the 1.2413 level. It could pause a fall of the rate in the case of the 1.2500 level failing to stop a decline.
Daily chart
Read More: Technical Analysis
Traders go short
On Wednesday, 67% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 74% of orders were to sell and 26% were to buy.
Previously, the orders were 55% to sell.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 74% of orders were to sell and 26% were to buy.
Previously, the orders were 55% to sell.