On Wednesday, the GBP/USD was retreating after it had bounced off the resistance of the 100-hour simple moving average. By the middle of the day, the rate had begun to trade around the 55-hour SMA.
The future of the rate was dependant on whether or not the SMAs manage to push the rate down or not.
Fed Rate Cut
The Federal Open Market Committee cut the Federal Funds Rate to a target range of 1.00% to 1.25% at an unscheduled emergency meeting.
The US policymakers announced the cut of the interest rate by a half of a percentage point in response to the increasing economic threat from the coronavirus outbreak.
Economic Calendar
Some might consider watching the ADP Non-Farm Employment Change on Wednesday at 13:15 GMT. This event has mostly caused moves from 11.8 to 20.0 base points.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be published. Last year, this event caused moves from 23.6 to 37.8 pips. This year, there were two moves of 11.9 and 20.6 pips.
On Friday, the US employment data will be released at 13:30 GMT. The event has caused moves from 16.2 to 51.3 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, the week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 02.03-06.03 Event Historical Reactions
GBP/USD short-term review
Note that the currency pair is pressured by the 55-hour SMA near 1.2790. Thus, some downside potential could prevail in the market. In this case the pair could target the weekly S1 at 1.2692.However, the exchange rate could gain support at the psychological level at 1.2750 and continue to consolidate in the short term.
Meanwhile, it is unlikely that bulls could prevail, and the rate could exceed the weekly PP at 1.2856.
Hourly Chart
On the daily candle chart, the rate has close by the support of the 200-day simple moving average, which was strengthening the weekly S1 pivot point near 1.2700.
Daily chart
Read More: Technical Analysis
Traders are neutral
Since Tuesday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
However, on Wednesday, trader orders were neutral. In the 100-pip range, 52% of orders were to buy and 48% were sell orders.
On Tuesday, 55% of orders were to sell.
However, on Wednesday, trader orders were neutral. In the 100-pip range, 52% of orders were to buy and 48% were sell orders.
On Tuesday, 55% of orders were to sell.