During today's morning, the GBP/USD exchange rate was trading at the psychological level at 1.2850.
The British Pound could consolidate against the Greenback, as the rate is squeezed by the 55- and 100-hour SMAs, as well the weekly PP.
Economic Calendar
This week there is only one event that could affect the GBP/USD pair.
On Thursday, October 24, the US Durable Goods data will be released at 12:30 GMT.
Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate dropped to the 1.2850 mark. During Wednesday morning, the rate was trading at the given level.It is unlikely that some upside potential could prevail in the market due to the resistance cluster formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% and the monthly R2 in the 1.2904/1.2934.
It is likely that the currency pair could decline within the following trading session. However, note, that the pair would have to surpass the support level formed by the weekly PP at 1.2832. If the given support holds, the British Pound could consolidate against the Greenback in the short run.
Hourly Chart
On the daily candle chart, the exchange rate surpassed the resistance provided by the 200-day moving average.
The rate faced the resistance level formed by the monthly R2 at 1.2904. The given moving average could now provide support, thus, the rate could continue to extend gains.
Daily chart
Read More: Technical Analysis
Traders go short
On Wednesday, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 61% of orders were to buy and 39% were to sell.
Meanwhile, trader orders were bullish. In the 100-pip range, 61% of orders were to buy and 39% were to sell.