On Wednesday, the 55-hour SMA pushed down the GBP/USD, as it was expected. Although, on Thursday, the currency exchange rate had found support in a pivot point at 1.2842 and surged back up to the SMA at 1.2874.
The future forecasts were based on what would occur at the SMA.
Economic Calendar
Main attention this week will be set on the Bank of England rate announcement. The rate statement is scheduled for Thursday 12:00 GMT. The announcement has caused immediate moves on the GBP/USD from 18.6 to 43.5 pips since February.Meanwhile, take into account that the week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
Read More: 04.11-08.11 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate declined to the support level - the weekly S1 at 1.2842. During Thursday morning, the rate was testing the 55-hour SMA at 1.2874.It is unlikely that some upside potential could prevail in the market, as the currency pair is pressured by the 55-, 100- and 200-hour SMAs, located in the 1.2875/1.2899 area.
Meanwhile, if the pivot point holds, it is likely that the British Pound could consolidate against the US Dollar in the short term. Otherwise, the pair could continue to decline. A possible downside target is the 1.2800/1.2820 area.
Hourly Chart
On the daily candle chart, the rate is consolidating by trading sideways in the borders of a larger ascending channel pattern.
The consolidation is occurring in a recently spotted low angle channel down pattern, which could guide the pair until the end of November.
Daily chart
Read More: Technical Analysis
Traders continue to short GBP/USD
Since Friday, 66% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment slight changed. 67% of volume was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 68% of orders were to buy and 32% were to sell.
Previously, the orders were 70% to buy.
On Thursday, the sentiment slight changed. 67% of volume was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 68% of orders were to buy and 32% were to sell.
Previously, the orders were 70% to buy.