The GBP/USD remains in a channel down pattern, which has guided the rate since March 18. However, the decline has not reached a new low level, as the rate appears to have found support in the 1.3670/1.3675 level.
In regards to the near term future, the rate was expected to get squeezed in between the mentioned support zone and the upper trend line of the descending channel pattern.
Economic Calendar
On Thursday, the US Final GDP is set to be released at 12:30 GMT. The event has caused moves from 10.9 to 39.4 pips since December 2019.
The week is set to end with the UK Retail Sales at 07:00 GMT. The event has caused moves from 8.6 to 20.6 pips.
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
If the currency exchange rate passes the support zone of the 1.3670/1.3675 level, it would most likely reach for the support of the 1.3600 level, which was supported by the weekly S3 simple pivot point. However, take into account that the rate could pause at round exchange rate levels. For example, the 1.3650 managed to provide both resistance and support in early February.On the other hand, the GBP/USD could pass the resistance line of the channel down pattern and the resistance of the weekly S2 simple pivot point at 1.3702. In addition, the round exchange rate level of 1.3700 could provide psychological resistance. If these levels would fail to keep the rate down, the pair could reach the 55-hour simple moving average near 1.3735.
Hourly Chart
On the daily candle chart, the rate has ended trading between the 1.4000 and 1.3800 levels, which has been going on since February 26. In addition, the rate has passed the support of the 55-day simple moving average, which was strengthening the support of the 1.3800 level.
Next support on the chart was the lower trend line of the large scale channel up pattern that captures the rate's large scale recovery, which has occurred since the initial coronavirus drop in March 2020. Since Wednesday, the rate was testing the support of this trend line.
In the meantime, the 1.3600 mark was being supported by the 100-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Tuesday, 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Since Wednesday, traders were 51% long. Traders had become neutral.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to buy the GBP/USD pair.
On Tuesday, 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Since Wednesday, traders were 51% long. Traders had become neutral.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to buy the GBP/USD pair.