On Wednesday morning, the GBP/USD exchange rate was testing the lower boundary of the medium-term ascending channel.
Given that the rate is pressured by the 55-, 100- and 200-hour moving averages, it is likely that some downside potential could prevail in the market.
British Pound appreciates on Supreme Court's decision
On Tuesday, September 24, the British Pound appreciated 75 pips or 0.60% against the US Dollar. Note the British Pound extended gains against other major currencies as well.
The reason for the advance was a decision by the United Kingdom Supreme Court on the Parliament suspension. The Court ruled that the Prime Minister Boris Johnson's order to suspend the Parliament in the run-up to Brexit was unlawful.
Opposition leaders have already demanded that the Prime Minister should resign now, as he deceived Queen Elizabeth, who officially suspended the Parliament on his advice.
Economic Calendar
On Thursday, the US Final GDP will be published at 12:30 GMT. This event has caused moves on the GBP/USD from 8.1 to 52.00 pips since June 2018.
Note that during the last two releases the pair moved the least and the most 8.1 and 52.0 pips.
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the GBP/USD moved from 6.5 to 15.1 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to surpass the weekly PP at the 1.2487 mark. During Wednesday morning, the rate was testing the lower boundary of the short-term ascending channel.Given that the currency pair is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1.2455/1.2477 area, it is likely that a breakout south could occur in the nearest future. Note that the nearest support level—the weekly S1, is located at 1.2392.
If the given channel holds, it is likely that the exchange rate could re-test the weekly PP. If the given level does not hold, the British Pound could exceed the 1.2500 level against the Greenback.
Hourly Chart
On the daily candle chart, the rate is bouncing around the 100-day simple moving average, which is located at the 1.2487 level.
Take into account that this level is from time to time providing both support and resistance.
Daily chart
Since the middle of last Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, on Tuesday 51% of orders in the 100-pip range were to buy and 49% were to sell.