The high volatility of the GBP/USD continued on Wednesday, as the rate plummeted during the late Asian trading session.
Namely, the pair dropped down to the support of the 1.2220 level. At that level a weekly pivot point paused the decline.Economic Calendar
On Thursday, at 12:30 GMT the US Preliminary GDP is scheduled to be published. The event has caused moves on GBP/USD charts from 8.0 to 16.7 pips since February.
GBP/USD short-term review
As the rate had found support in the weekly pivot point at 1.2220, there were couple of scenarios that could be expected.In general, as the pair has close by the support of an ascending channel pattern, the rate is expected to trade sideways until it reaches the lower trend line of the pattern.
On the other hand, watch out for new Brexit announcements that might break technical levels.
Hourly Chart
On the daily candle chart the rate is testing the resistance of a large scale descending channel pattern.
In theory, the rate should drop below the 1.2220 level and begin a decline.
To sum up, see that the hourly and daily candle charts contradict one another.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
By the middle of Wednesday's trading session, 60% of open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral, as 53% of orders were set to sell and 47% were to buy.
By the middle of Wednesday's trading session, 60% of open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were almost neutral, as 53% of orders were set to sell and 47% were to buy.