As expected, the GBP/USD has declined. On Wednesday, the pair first reached the 50.00% Fibo at 1.2418 and afterwards dropped down to the weekly S1 simple pivot point at the 1.2360 mark.
In the aftermath of the drop, on Wednesday, the rate began to trade sideways.
Economic Calendar
All attention of GBP traders is expected to be set on the upcoming Thursday's 06:00 GMT Bank of England Official Bank Rate and the Monetary Policy Report.
On Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
GBP/USD short-term review
Note that the currency pair is trading near the lower boundary of an ascending triangle pattern. Thus, from a theoretical perspective, it is likely that a reversal north could occur in the short run, and the pair could re-test the monthly PP at 1.2470.Meanwhile, note that the exchange rate is pressured by the 55– and 200-hour SMAs near 1.2450. Thus, some downside potential could prevail. Note that the rate could gain support from the monthly S1 at 1.2292.
Hourly Chart
On the daily candle chart, the ascending triangle pattern can be observed better. A supporting ascending trend line is pushing the rate up. Meanwhile, the rate faces a horizontal resistance, which keeps the GBP/USD below 1.2640.
Daily chart
Read More: Technical Analysis
Swiss traders are long
On Tuesday, the sentiment on the Swiss Foreign Exchange was 55% long. By mid-Wednesday, the sentiment was 54% long.
Namely, 54% of open GBP/USD position volume was in long positions
Namely, 54% of open GBP/USD position volume was in long positions