The GBP/USD has reached the 1.3300 level on Wednesday morning. The rate touched the level before retreating back to the support of the 1.3250 mark.
In regards to the near term future, the rate was set to trade sideways until the additional support of the 55 and 100-hour simple moving averages catch up.
Economic Calendar
On Thursday, at 07:00 GMT pay attention to the UK Preliminary GDP, which could cause a minor increase of volatility on the GBP pairs. The GBP/USD rate has moved from 12.8 to 39.2 pips on the announcement.
On the same day, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 29 pips on the announcement.
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The GBP/USD has moved from 11.1 to 36.2 pips during the release of the PPIs.
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
It is likely that the currency pair could gain support from the 55– and 100-hour moving averages in the 1.3200 area and trade upwards in the short term. In this case the pair could try to exceed the weekly R2 at 1.3386.However, if the predetermined resistance level holds, the exchange rate could reverse south in the nearest future. The rate could target the support level formed by the weekly PP and the 200-hour SMA at 1.3062.
Hourly Chart
On the daily candle chart, the rate has clearly passed the October high level of 1.3180. next target of a surge could be the August high at 1.3480.
In the meantime, the rate had additional support on the chart at the 1.3000 level. At that level, the 55-day simple moving average was located at.
Daily chart
Read More: Technical Analysis
Traders go short
On Tuesday, 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 62% short. Additional short positions had been opened and long positions closed.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
On Tuesday, 87% of orders were to sell. These orders were executed, as traders went short.
On Tuesday, 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 62% short. Additional short positions had been opened and long positions closed.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to sell the GBP/USD pair.
On Tuesday, 87% of orders were to sell. These orders were executed, as traders went short.