Above all note the incoming two central bank announcements. The Federal Reserve is hiking rates on Wednesday at 18:00 GMT. All markets will adjust to the news. Afterwards, on Thursday, the Bank of England will hike its interest rate. The next 24 hours are bound to be historical for the GBP/USD pair. Economic Calendar
The top event of the month is scheduled for Wednesday's 18:00 GMT. The US Federal Reserve will publish its Economic Projections and Statement. The central bank is expected to hike interest rates. The question remains among market participants whether a 0.50% or 0.75% hike occurs.
Note that after the official announcement a press conference is scheduled for 18:30 GMT.
On Thursday, the Bank of England is set to hike its interest rate at 11:00 GMT. The bank is expected to hike interest rates from 1.00% up to 1.25%.
In addition, note that the markets are set to react to the information about the future that will be included in the Monetary Policy Summary.
GBP/USD short-term review
If the surge of the GBP/USD continues, the rate could once again test the combination of the 1.2200 mark and the weekly S1 simple pivot point at 1.2206.On the other hand, note that to once again reach the 1.1950 level, the pair would have to reach below the 1.2100 mark and the weekly S2 simple pivot point at 1.2104 and the 50-hour simple moving average.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has reached below 2020 May low level and shortly pierced the 1.2000 mark.Meanwhile, the recent high levels were used to mark a new 2022 channel down pattern, which could guide the pair in the future. Note the support line of the pattern near 1.1800.
Daily chart
Read More: Technical Analysis
Traders are long
On Wednesday, traders were 61% long, as 61% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 52% to sell the GBP/USD.
On Tuesday, the open positions were 62% long and pending orders were 63% to buy. Traders appeared to be expecting a retracement back up.
On Wednesday, traders were 61% long, as 61% of trader open position volume on the Swiss Foreign Exchange was in long positions.
In the meantime, pending orders in a 100-base point range around the pair were 52% to sell the GBP/USD.
On Tuesday, the open positions were 62% long and pending orders were 63% to buy. Traders appeared to be expecting a retracement back up.