On Tuesday, the GBP/USD currency exchange rate bounced off the resistance of the weekly R1 simple pivot point and the 1.3830 mark. The following decline reached the 200-hour simple moving average near 1.3760 and began to trade around the moving average.
However, on Wednesday morning, the 100-hour simple moving average provided resistance at 1.3780. The event resulted in a sharp move down to the 1.3720 level.
Economic Calendar
At 12:30 GMT, on Thursday, the US Advance GDP is expected to impact the value of the US Dollar. In addition, the US Unemployment Claims could also slightly impact the USD. The GDP has moved the GBP/USD from 9.6 to 21.8 pips, and the Claims from 12.1 to 18.3 base points.
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
In the case that the decline of the GBP/USD continues, the rate might look for support in the weekly S1 simple pivot point at 1.3706. Immediately below the pivot point, the 1.3700 mark could provide support.On the other hand, a recovery of the pair would most likely encounter resistance in the combination of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.3770/1.3775.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has pierced the resistance of the 100-day simple moving average. However, the 200-day SMA still provides resistance and strengthens the 1.3850 mark.Meanwhile, the 55-day SMA appears to have started to provide support at the 1.3725 level.
Daily chart
Read More: Technical Analysis
Short sentiment changes
On Wednesday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 63% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 84% to buy.
On Wednesday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 63% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 84% to buy.