The high volatility caused by the US Fed Chairman's testimony resulted in the GBP/USD dropping from the resistance zone at 1.3365 to the 1.3200 mark.
However, by the middle of Wednesday's European trading hours, the rate had returned to previous levels, as it had once again used the support zone at 1.3300/1.3380 and was heading to the 1.3367/1.3370 resistance zone.
Economic Calendar
This week, the main event will be the release of the US employment data on Friday at 13:30 GMT. The release will consists of the publication of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The rate has moved from 35.2 to 52.8 pips on the employment release.
Prior to the monthly employment data, on Thursday, at 13:30 GMT the US weekly Unemployment Claims might cause a move.
In addition, take into account the US ISM Services PMI survey results on Friday at 15:00 GMT. This event has caused GBP/USD moves from 8.2 to 26.9 base points.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
A breaking of the resistance zone at 1.3367/1.3370 could result in the GBP/USD testing the weekly R1 simple pivot point at 1.3449 and the 1.3450 mark. Although, take into account that the 1.3400 might act as resistance.On the other hand, a decline might find support in the 50 and 100-hour simple moving averages near 1.3310/1.3320, before reaching the support zone at 1.3300/1.3380.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern. Note the lower trend line of the pattern near 1.3200.Daily chart
Read More: Technical Analysis
Long sentiment changes
Since Monday, traders were bullish, as 70% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell the GBP against USD.
On Wednesday, the sentiment was 67% long and orders were 67% to sell.
Since Monday, traders were bullish, as 70% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell the GBP against USD.
On Wednesday, the sentiment was 67% long and orders were 67% to sell.