On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price index data was released. The USD reacted by declining. The GBP/USD currency exchange rate reacted by sharply moving to the 1.3680 mark, which at 14:00 GMT appeared to have stopped the jump.
Economic Calendar
On Thursday, at 13:30 GMT, the US Producers Price Index and Core Producers Price Index data sets are scheduled to be published. At the same time, the US weekly Unemployment Claims could cause a minor impact on the USD.
The PPI has caused GBP/USD moves from 8.4 to 13.1 pips. Meanwhile, the claims have moved the rate 8.5 to 19.1 pips. Note that quite often the claim release occurs together with other data.
The week will end with the US Retail Sales and Core Retail Sales on Friday at 13:30 GMT. The pair has moved from 10.4 to 29.6 pips.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
In the case that the GBP passes the 1.3680 level against the US Dollar, the currency exchange rate could look for resistance in the 1.3700 mark. Afterwards, the weekly R2 simple pivot point at 1.3709 might act as resistance. Above the R2, there is no technical resistance as high as the 1.3820 level, where the R3 simple pivot point is located.Meanwhile, a potential decline would most likely look for support in the weekly R1 simple pivot point at 1.3652 and the 1.3650 mark, before aiming at the 50 and 100-hour simple moving averages and the 1.3600 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has broken the upper trend line of the channel down pattern. It indicates that the decline, which occurred since June, is over.Meanwhile, note that on January 11, the 100-day simple moving average acted as support at 1.3555.
Daily chart
Read More: Technical Analysis
Short sentiment grows
Since Thursday, traders were bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions. On Tuesday, the proportion changed to 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP against USD.
On Wednesday, the sentiment was already 75% short and orders were 78% to sell. The changes were attributed to bulls taking profits.
Since Thursday, traders were bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions. On Tuesday, the proportion changed to 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP against USD.
On Wednesday, the sentiment was already 75% short and orders were 78% to sell. The changes were attributed to bulls taking profits.