The decline of the GBP/USD has reached below the 1.3700 level.
Moreover, the descending channel pattern, which was previously broken has been adjusted. Namely, the upper trend line has been set at the Tuesday's high levels.
Economic Calendar
On Wednesday, at 13:45 GMT the US Services and Manufacturing PMIs could cause moves from 7.8 to 30.5 pips.
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 decline continues, the pair should eventually reach for the support of the 1.3600 level and the weekly S3 simple pivot point. However, potential declines could be slowed down by the 1.3650 level and the lower trend line of the channel down pattern.On the other hand, the rate could consolidate its recent decline by trading sideways or retracing back up to the upper trend line of the channel down pattern and the 1.3750 level.
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. On 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.
On Wednesday, traders were 51% long. Traders had become neutral.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy the GBP/USD pair.
On Tuesday, 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, traders were 51% long. Traders had become neutral.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy the GBP/USD pair.