During the European night and Asian trading hours, the GBP/USD currency exchange rate retreated below the support of the 55-hour simple moving average. Afterwards, up to the middle of the day, the SMA was providing the pair with resistance.
Economic Calendar
On Friday morning, at 06:00 GMT, the UK Retail Sales could cause a move. The event has caused moves from 8.6 to 20.6 since November 2020.
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GBP/USD short-term review
If the rate bounced off properly from the resistance of the 55-hour simple moving average, it would most likely look for support in the 1.3903 level, where the weekly R1 simple pivot point was located at. In addition, support could be found in the 100-hour SMA near the 1.3880 level.On the other hand, a potential breaking of the resistance of the 55-hour SMA would most likely result in another test of the 1.4000 mark and the 1.4010 level.
Hourly Chart
GBP/USD daily chart's review
On Wednesday, the rate had reached the 1.4000 level and bounced off it, following breaking the resistance level of the 1.3800 mark and the 55-day simple moving average the previous day.Note that the 1.4000 has been keeping the GBP/USD down since the start of March.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, traders were short, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 64% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to buy. Previously, the orders were 64% to buy.
On Wednesday, traders were short, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 64% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to buy. Previously, the orders were 64% to buy.