The GBP/USD currency exchange rate found support in the 1.3800 level just after GMT midnight to Wednesday. At mid-day the pair was testing and piercing the resistance of the 55, 100 and 200-hour simple moving averages in the 1.3825/1.3840 zone.
Economic Calendar
On Wednesday morning, the Pound's traders are bound to watch the publication of United Kingdom's Consumer Price Index data at 06:00 GMT. The UK's release has created GBP/USD moves from 8.8 to 21.8 pips during the last half-year.
On Thursday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data sets are set to be released to the public. The event has created moves from 13.2 to 29.6 pips since April.
Note that at the same time the US Unemployment Claims are scheduled to be released.
On Friday, the UK Retail Sales could cause a minor increase of volatility on GBP pairs at 06:00 GMT. For example, the GBP/USD has moved from 7.4 to 15.6 pips on the release.
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
If the pair manages to pass the resistance of the SMAs, it could once again test the weekly R1 simple pivot point at 1.3910 level. However, on its way up the GBP/USD might be slowed down by the 1.3900 mark.On the other hand, if the SMAs hold and cause a decline, the rate would most likely look for support in the 1.3800 level. In the case of the 1.3800 mark being passed, the weekly S1 simple pivot point at 1.3748 could be reached.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate trades in limbo around the 55 and 200-day simple moving averages near the 1.3810/1.3830 zone.Meanwhile, the 100-day SMA remains near the 1.3920 level. On Tuesday, it acted as resistance to the surge that was caused by the US CPI. The resistance was enough to beat the rate back down to trade near the 55 and 200-day SMAs.
Daily chart
Read More: Technical Analysis
Sell orders are gone
On Tuesday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was at 64% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to buy. The orders were 68% to sell on Tuesday.
On Tuesday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was at 64% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to buy. The orders were 68% to sell on Tuesday.