At mid-day on Tuesday, the GBP/USD passed the support of the weekly S1 simple pivot point and the lower trend line of the channel down pattern. However, the event did not result in the expected decline to the weekly S2 simple pivot point or the 1.3600 mark. Instead, the rate started a minor recovery at the 1.3606 level.
Economic Calendar
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT. The GBP/USD has moved from 24.2 to 70.8 base points during the time of the publication.
The top event for the GBP will occur on Thursday. At 12:00 GMT, the Bank of England Official Bank Rate will be published together with the Monetary Policy Statement. The rate has moved 26.9 to 71.8 pips on the release.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move. The rate has moved 11.7 to 18.3 pips, as the Claims are released.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT. The event has moved GBP/USD from 35.2 to 52.8 pips since June 2021.
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
By the middle of Wednesday's trading, the recovery had ignored technical levels like the weekly S1 simple pivot point and the 50-hour simple moving average. The reason for the ignoring of the technical levels was the fact that the Bank of England is about to announce their monetary policy updates.Take into account that quite often the surges or drops that are caused by fundamental events stop at technical levels. Due to that reason note the resistance of the 100-hour SMA near 1.3685, the 200-hour SMA and the weekly simple pivot point near 1.3730. Meanwhile, the 1.3600 mark and the weekly S2 simple pivot point at 1.3567 could act as support levels.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed below the support of the 55-day simple moving average, which kept the pair up for three consecutive trading sessions near 1.3720.In regards to the future, the pair could find support in the July and August low levels below the 1.3600 mark.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were short, as 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell. On Tuesday, 80% were to buy.
On Wednesday, traders were short, as 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell. On Tuesday, 80% were to buy.