The support of the 100-hour simple moving average and the 61.80% Fibonacci retracement level caused a surge on Tuesday. The surge reached the resistance of the 1.2750 level and after a second attempt passed it.
On Wednesday morning, the 1.2750 exchange rate level was already providing support to the GBP/USD.
Economic Calendar
At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday.
On Friday, some might watch the 06:00 release of UK GDP and Manufacturing Production. This event could cause a move of GBP/USD from 11.9 to 29.8 base points.
GBP/USD short-term review
In the near term future, from a technical perspective the rate was expected to wait for the support of the 55 and 100-hour simple moving averages, which would push the rate up.However, take into account that the rate might fluctuate sideways until the Federal Reserve announcement.
Hourly Chart
On the daily candle chart, the currency exchange rate has passed the resistance of the 200-day simple moving average.
Moreover, on Wednesday the rate firmly traded above the SMA without piercing it or using it as support.
Daily chart
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Swiss traders short GBP/USD
On Wednesday, 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
At mid-Tuesday, 63% of positions were short.
Meanwhile, in the 100-pip range around the rate, 50% of pending orders were set to buy and sell the GBP/USD. The orders were neutral.
Previously, 52% of orders were to sell.
At mid-Tuesday, 63% of positions were short.
Meanwhile, in the 100-pip range around the rate, 50% of pending orders were set to buy and sell the GBP/USD. The orders were neutral.
Previously, 52% of orders were to sell.