Since the start of Monday's GMT trading, the GBP/USD had surged to the pivot point at 1.2292. The rate bounced off this level late on Wednesday and retreated to find support in the cluster of technical levels at 1.2220.
On Wednesday, the rate was expected to once again test the resistance of the pivot point at 1.2292.
Economic Calendar
On Thursday, the UK Markit Manufacturing and Services PMIs survey results are to be released at 8:30 GMT.
On Friday, the UK Retail Sales data will be published at 8:30 GMT.
In addition, Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT.
17.05-23.05 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tried to surpass the resistance formed by the 200-hour SMA and the monthly S1 in the 1.2280 area. During Wednesday morning, the rate was trading at 1.2240.Note that the currency pair faced the support cluster formed by the weekly PP, the Fibo 38.20%, as well the 55– and 100-hour SMAs in the 1.2190/1.2218 range. If the given support and resistance hold, it is likely that the pair could consolidate in the short run.
However, if the given resistance does not hold, it is likely that the exchange rate could reach the weekly R1 at the 1.2333 mark within the following trading session.
Hourly Chart
On the daily candle chart, it can be spotted that the 55-day simple moving average is strengthening the resistance of the weekly R1 pivot point at 1.2333.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Monday, the sentiment on the Swiss Foreign Exchange was 66% long.
On Tuesday, it was 60% long, and, by the middle of Wednesday, 57% long.
Traders had been taking profits.
On Tuesday, it was 60% long, and, by the middle of Wednesday, 57% long.
Traders had been taking profits.