During the early hours of Wednesday's US trading hours, the GBP/USD currency exchange rate had revealed a channel up pattern, which had guided the rate since Friday. However, the pattern was not expected to hold, as the incoming US Consumer Price Index data on Thursday was expected to cause an adjustment of the value of the USD.
Economic Calendar
On Thursday, the publication of the US Consumer Price Index and US Core Consumer Price Index data at 13:30 GMT is set to impact the value of the US Dollar. Note that at the same time, the weekly US Unemployment Claims will be published.
On Friday, February 11, at 07:00 GMT, the UK Preliminary quarterly Gross Domestic Product data will be published. A GBP move on all Pound charts can be expected.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
In the meantime, on Wednesday, the rate was looking for support in the combination of the 50 and 100-hour simple moving averages and the lower trend line of the channel up pattern at 1.3545/1.3555. If the support levels hold, the rate could reach the 1.3600 level, before aiming at the February high level zone at 1.3615/1.3628.On the other hand, a decline below 1.3545 might find support in the weekly simple pivot point and the 200-hour simple moving average near 1.3520.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate appears to be ignoring technical levels, as the 50 and 100-day simple moving averages did not manage to impact the currency exchange rate for more than one trading session. Namely, the two SMAs had acted as resistance.Next target for the surge of the pair is the 200-day simple moving average, which reversed the rate's surge in mid-January.
Daily chart
Read More: Technical Analysis
Traders are short
Since Monday, traders were mostly bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 62% to sell the GBP against USD.
Since Monday, traders were mostly bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 62% to sell the GBP against USD.