The 100-hour simple moving average provided the GBP/USD with enough support for the rate to return to the resistance of the 1.3380 level. On Wednesday morning, the pair bounced off this level.
By the middle of the day's GMT trading hours, the rate had reached below technical support levels near the 1.3340 mark.
Economic Calendar
At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
By the middle of Wednesday's European trading hours, the rate had passed the support of the weekly R1 simple pivot point and the 55-hour simple moving average at 1.3344. Due to that reason, the currency exchange rate had no technical support as low as the 100-hour simple moving average at 1.3307.In the case of the 100-hour SMA holding, as it did on Monday and Tuesday, the rate would once again surge. A potential surge could first test the combined resistance of the weekly R1 and the 55-hour SMA at 1.3344. Afterwards, another attempt to pass the 1.3380 mark would occur.
In the meantime, note that the Monday and Tuesday low levels can be connected to reveal a supporting trend line. If one combines it with the resistance zone from 1.3380 to 1.3400, an ascending triangle pattern can be observed.
On the other hand, a passing of the support levels could result in a decline to the 200-hour simple moving average near 1.3265.
Hourly Chart
On the daily candle chart, the rate appears to be heading to the high level of September 1 at 1.3490.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, 60% of trader open position volume on the Swiss Foreign Exchange has been in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 65% to sell the GBP/USD pair.
On Tuesday, the orders were 56% to buy the pair.
Since Tuesday, 60% of trader open position volume on the Swiss Foreign Exchange has been in short positions.
Meanwhile, on Wednesday, in the 100-pip range around the rate the pending orders were 65% to sell the GBP/USD pair.
On Tuesday, the orders were 56% to buy the pair.