On Tuesday, the GBP/USD surged and reached the resistance of the weekly R1 simple pivot point at the 1.3830 level. The pivot point's resistance held and caused a decline.
By the middle of Wednesday's European trading hours, the decline had passed the support of the 55-hour SMA at 1.3769 and was heading to the 1.3750 mark.
Economic Calendar
On Thursday, at 12:30 GMT the weekly US Unemployment Claims might cause a minor USD move. The claims have moved the rate from 10.4 to 18.3 base points since September 16.
On Friday morning, the UK Retail Sales could impact the value of the Pound at 06:00 GMT. Moves from 11.2 to 15.6 have occurred on the release since May.
At 08:30 GMT, the UK Manufacturing and Services PMIs are going to impact the value of the GBP. 11.4 to 15.7 point move could be caused.
At 13:45 GMT, the week's notable events will end with the publication of the US Manufacturing and Services PMIs. The GBP/USD has moved has moved from 8.5 to 24.2 pips allegedly due to the release since May 21.
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
In the case that the 1.3750 mark, which could be supported by the 100-hour SMA, holds, the EUR/USD would recover. A potential recovery might find resistance first in the 55-hour SMA at 1.3770. Afterwards, the weekly R1 simple pivot point at 1.3830 might serve as resistance.On the other hand, a decline below the 1.3750 mark would highly likely result in a decline to the weekly simple pivot point at the 1.3700 mark. Note that the round exchange rate of 1.3700 can provide support and resistance on its own.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has passed the resistance of the 55-day simple moving average near 1.3735. Meanwhile, the 100 and 200-day SMAs were providing resistance at 1.3810 and 1.3850.Daily chart
Read More: Technical Analysis
Sell orders are gone
On Wednesday, traders were short, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 58% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to buy.
The orders were 90% to sell on Tuesday. It appears that traders cancelled the orders.
On Wednesday, traders were short, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 58% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 55% to buy.
The orders were 90% to sell on Tuesday. It appears that traders cancelled the orders.