On Wednesday, the resistance of the 55 and 100-hour simple moving averages was enough for the rate to decline and break the channel up pattern. Moreover, the weekly S1 simple pivot point was ignored during the decline.
In the meantime, note that the currency exchange rate passed the support of the hourly simple moving averages, the weekly simple pivot point and the support zone of 1.3800/1.3820. It appeared that these levels were eventually passed despite holding for a short time.
Economic Calendar
Notable events for this week are over. Expect the next week's event analysis to be published during the US trading hours of Thursday.
More detailed analysis for each Trading Ideas section pair is bound to be written in the daily publication on Friday.
GBP/USD short-term review
It was spotted that the 1.3720/1.3725 zone was providing the currency exchange rate with support. The GBP/USD could trade above this zone until it is approached by the resistance of the 55, 100 and 200-hour simple moving averages.In the case of the SMAs pushing the rate through the support zone, the rate could look for support first in the 1.3700 mark and afterwards the weekly S2 simple pivot point at 1.3651 and the 1.3650 mark.
On the other hand, a failure of the SMAs could result in a surge to the weekly simple pivot point at 1.3798 and the 1.3800 mark.
Hourly Chart
On the daily candle chart, the passing of the 55-day simple moving average did not result in a surge. Moreover, the rate's recent decline has once again pierced the lower trend line of the channel up pattern, which guided the rate since March 2020.
In general, it appears that the technical levels of the daily candle chart could not be relied on during this week.
However, note that the rate was being approached by the 100-day simple moving average, which on Thursday was located at 1.3674.
Daily chart
Read More: Technical Analysis
Traders are almost neutral
On Thursday, traders were short, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
During the middle of Wednesday's trading, 54% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy the GBP/USD pair. Previously, orders were neutral.
On Thursday, traders were short, as 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
During the middle of Wednesday's trading, 54% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 59% to buy the GBP/USD pair. Previously, orders were neutral.