As forecast on Tuesday, the GBP/USD has passed the resistance of the technical levels that were located from 1.3110 to 1.3140.
However, the breaking of the resistance levels did not result in the expected surge to the weekly R1 simple pivot point at 1.3220, as the 1.3160 level stopped the pair.
Economic Calendar
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
On Wednesday morning, the currency exchange rate was testing the resistance of the 1.3160 level.In the case of the 1.3160 level failing to hold the pair down, the GBP/USD would aim at the mentioned weekly R1 simple pivot point at 1.3220 mark. However, take into account that other round price levels could provide resistance. For example, the 1.3180 and 1.3200 levels could stop the rate.
On the other hand, the rate could trade sideways until it is pushed up by the support of the hourly simple moving averages.
Hourly Chart
On the daily candle chart, the pair has come close to reaching the lower trend line of the long term channel up pattern. The trend line could provide support.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Wednesday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 69% short on Tuesday.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to sell the GBP/USD pair.
Previously, 53% of orders were to buy.
On Wednesday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 69% short on Tuesday.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to sell the GBP/USD pair.
Previously, 53% of orders were to buy.