Despite not having any technical resistance on Tuesday, the GBP/USD did not surge. Instead, by the middle of Wednesday's trading session the rate had retreated to the 200-hour simple moving average near 1.2980.
In the case of the SMA failing to provide support, the currency exchange rate could drop down to the weekly S1 simple pivot point at 1.2924.
Economic Calendar
On Thursday, UK Retail Sales data is set to be published at 09:30 GMT. Since September, the rate has moved from 14.6 to 58.2 pips during the announcement of the Retail Sales data.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 17.02-21.02 Event Historical Reactions
GBP/USD short-term review
By the middle of Wednesday's GMT trading hours, the pair had reached the support of the 200-hour simple moving average near 1.2980.In the case of this support level being passed, the currency exchange rate would be expected to reach the weekly S1 simple pivot point at 1.2924.
However, the SMA might hold. In this case, the currency pair could retrace back up to the resistance levels that are located from 1.2997 to 1.3021.
Hourly Chart
On the daily candle chart, the rate has bounced off the resistance of the 55-day simple moving average and has begun a decline to the 100-day SMA.
In regards to the future, the rate could get squeezed in between the 55 and 100-day simple moving averages. A squeeze could result in a sharp break out either up or down.
Daily chart
Read More: Technical Analysis
Traders remain neutral on GBP/USD
On Wednesday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to buy. In the 100-pip range, 54% of orders were to buy and 46% were sell orders.
Previously, the pending trade orders were 58% to buy.
Meanwhile, trader orders were set to buy. In the 100-pip range, 54% of orders were to buy and 46% were sell orders.
Previously, the pending trade orders were 58% to buy.