On Wednesday, the GBP/USD was testing the support of a weekly pivot point at 1.3090.
If the pivot point would fail to keep the rate from declining further, next up the monthly pivot at 1.3028 could be targeted.
Economic Calendar
On Thursday, at 09:30 GMT, the United Kingdom Retail Sales data will be made public. The Retail Sales could cause a move from 12.0 to 15.9.On the same day, at 12:00 GMT, the event of the week for the Pound will take place. The Bank of England Official Bank Rate and the Bank of England Monetary Policy Summary will be published.
On Friday, two data release should be watched by the GBP/USD traders. The UK Current Account with 8.3 to 38.4 pips at 09:30 GMT and the US Final GDP with 8.1 to 52.0 pips at 13:30 GMT.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate declined to the support formed by the weekly S1 and the monthly R2 in the 1.3100 area. During Wednesday morning, the rate was testing the given support.If the given support does not hold, it is likely that the British Pound could continue to depreciate against the US Dollar in the short run. In this case the currency pair could gain support of the monthly R1 at 1.3028.
Otherwise, it is likely that a reversal north could occur in the nearest future. Note that in this case the exchange rate would have to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the Fibo 50.00%, the weekly PP and the monthly R3 in the 1.3196/1.3303 area.
Hourly Chart
On the daily candle chart, the rate's decline has reached the lower trend line of a large scale channel up pattern, which is strengthening the weekly S1 pivot point at 1.3090.
Daily chart
Read More: Technical Analysis
Traders short GBP/USD
On Wednesday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 63% of orders were buy and 37% were to sell.
The orders were 71% to buy on Tuesday.
Meanwhile, trader orders were bullish. In the 100-pip range, 63% of orders were buy and 37% were to sell.
The orders were 71% to buy on Tuesday.