On Wednesday morning, the GBP/USD confirmed a medium scale channel up pattern. The pattern's lower trend line caused a surge to the technical resistance levels that were located near the 1.3070 mark.
In theory, the pattern should cause a larger decline. However, there is a strong resistance cluster from 1.3070 to 1.3090.
Economic Calendar
On Wednesday, the UK GDP data, as well the Manufacturing Production data is set to be issued at 6:00 GMT. Later that day, the US Core CPI and CPI data will be released at 12:30 GMT.
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate revealed a medium-term ascending channel. During Wednesday morning, the rate reversed north from the lower channel line.From a theoretical point of view, it is likely that some upside potential could prevail in the market in the nearest future.
In the meantime, note that the currency pair would have to exceed the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3070/1.3090 area.
Hourly Chart
On the daily candle chart, the rate is consolidating in the 1.3100 area.
In the meantime, it is likely that the rate is in the overbought area, as it is trading far above the 55-, 100- and 200-day moving averages.
Daily chart
Read More: Technical Analysis
Traders are short
Since Monday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 68% short on Wednesday.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 53% of pending orders were set to buy the GBP/USD pair.
The orders were 52% bearish on Tuesday.
Since Monday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 68% short on Wednesday.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 53% of pending orders were set to buy the GBP/USD pair.
The orders were 52% bearish on Tuesday.