On Wednesday at 19:00 GMT, the US Federal Reserve confirmed that it would end quantitative easing, gradually decrease its balance sheet and hike interest rates. The event resulted in a minor decline of the USD, which was followed by a sharp surge of the US currency.
On the GBP/USD charts, by mid-Thursday, the event had resulted in the crashing of the large scale pattern. At mid-day, the rate had touched the 1.3375 mark. This level represents the upper border of a support and resistance zone.
Economic Calendar
This week, last notable events will be the Thursday 13:30 GMT release of the US Advance GDP, Durable Goods Orders and Unemployment Claims
GBP/USD short-term review
In regards to the near term future, the rate could consolidate by trading sideways above the support zone near the 1.3375 level or declining. A potential decline would have to pass the support zone, the weekly S3 simple pivot point at 1.3361 and the 1.3350 mark, before the pair reaches new low level.Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has declined below the support of the 50-day simple moving average and the 1.3412 mark, which represents the September low level. The next target for the pair could be the 1.3200 mark.Daily chart
Read More: Technical Analysis
Traders are short
On Thursday, traders were mostly bearish, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to buy the GBP against USD.
On Thursday, traders were mostly bearish, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to buy the GBP against USD.