After the sharp move up and decline on Tuesday, the GBP/USD resumed its decline on Wednesday and reached a new low level.
In general, the decline was expected to continue, as the pair had no close by technical support levels.
However, take into account that the pair might trade sideways until the release of the FOMC Meeting Minutes at 18:00 GMT.
The British Pound traded sideways against the US Dollar, following the UK Employment data set release on Tuesday at 08:30 GMT. The GBP/USD exchange currency rate lost 6 pips or 0.05% right after the release. The British Pound continued trading at the 1.2945 level against the Greenback.
Office for National Statistics released the UK Average Earnings Index data, which came out worse-than-expected of 3.2% compared with forecast 3.4%. Note, that the UK Unemployment Rate was released at the same time.
The UK labour market maintains its stability with a record number of people in work. The unemployment fell to 3.8%, the lowest level since the end of 1974.
UK data starts on Wednesday
During the day, the UK Inflation Repot will be published. The time has not been set. Due to that reason a sudden surprise might occur and impact the GBP.Late on Wednesday, the top event of the month will occur. The US FOMC Meeting Minutes will be released at 18:00 GMT. On the GBP/USD it has caused moves from 12.6 to 22.5 pips since October 2018.
On Friday, the UK Retail Sales data release at 08:30 GMT is expected to cause a move on the GBP/USD from 15.6 to 24.5 pips.
The week will end with the US Durable Goods Orders and Core Durable Goods Orders on Friday at 12:30 GMT. This event has been rather non-eventful in the past half a year, as it has caused moves of only nine to 20.5 pips.
GBP/USD short-term review
After experiencing a sharp jump up and decline at the end of Tuesday's London trading session, the GBP/USD resumed its decline. By the middle of Wednesday's trading session the rate had reached below 1.2680.In general, the rate was expected to continue the decline, as it had no technical support as low as 1.2610. At that level the weekly S1 of the simple pivot points was located at.
Meanwhile, note that all USD pairs will be impacted today by the FOMC Meeting Minutes at 18:00 GMT.
Hourly Chart
On the daily candle chart, the GBP/USD has broken the lower trend line of a descending channel pattern.
The rate continued the decline after the braking of the pattern.
Meanwhile, the rate has fallen fall below the daily simple moving averages, which is a clear signal that the rate has been oversold.
Daily chart
Despite the continuation of the decline, traders are long and expect a retracement back up.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 56% of orders were set to sell.