Next up, watch the reaction from the Bank of England rate hike. Economic Calendar
On Thursday, the Bank of England is scheduled to also hike its interest rate at 12:00 GMT. The central bank is bound to react to and comment on recent political events in the United Kingdom.
On the same day at 14:00 GMT, the US ISM Services PMI is expected to impact the value of the US Dollar.
On Friday, more important data will be published. At 12:30 GMT, the US Unemployment Rate, Non-Farm Employment Change and Average Hourly Earnings are expected to cause US Dollar's moves.
GBP/USD short-term view
If the GBP/USD continues to lose value against the US Dollar, the pair might find support in the weekly S1 simple pivot point at 1.1365. However, it is more likely that the round exchange rate levels once again impact the pair at 1.1350, 1.1300, 1.1250, 1.1200 and 1.1150.On the other hand, a recovery of the Pound against the Greenback is expected not only to face previous resistance levels at 1.1550, 1.1600 and 1.1650, but also the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point might stop the pair near 1.1500.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the resistance of the 50-day SMA was broken. Afterwards, the pair was approaching the 100-day SMA near 1.1650. Since October 27, the moving average acted as resistance.Note that the previously broken 50-day simple moving average could start to act as support.
Daily chart
Read More: Technical Analysis
Traders are short
In the aftermath of the US rate hike, traders were bearish, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 59% to sell the GBP/USD.
In the aftermath of the US rate hike, traders were bearish, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 59% to sell the GBP/USD.