As forecast, the GBP/USD traded sideways until the 55-hour SMA caught up with it and pushed it up. Namely, the SMA caused a surge, which by the middle of Thursday's GMT trading hours had reached 1.2660 level.
In theory, the pair should continue the surge, as it had no technical resistance as high as 1.2700.
Economic Calendar
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
GBP/USD short-term review
As the rate had passed the resistance of the 61.80% Fibonacci retracement level at 1.2646, it had no technical resistance as high as the weekly R2 simple pivot point at 1.2701. In theory, the currency exchange rate should reach for this level. In addition, take into account that the 1.2700 round exchange rate level should provide resistance.On the other hand, the rate could consolidate by trading sideways or even declining until the support of the 55 and 100-hour simple moving averages catches up.
Hourly Chart
On the daily candle chart, the rate has additional support in the 55 and 100-day simple moving averages. The SMAs were located at the 1.2422 and 1.2445 levels.
In the meantime, the 200-day simple moving average was strengthening the resistance of the 1.2700 level.
Daily chart
Read More: Technical Analysis
Traders take profits
Since Tuesday, 59% of trader open position volume on the Swiss Foreign Exchange was in long positions.
The sentiment changed on Thursday, as 56% were long. It can be assumed that some traders took profits from their long positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 56% of pending orders were set to buy the GBP/USD.
Previously, orders were 51% to sell. Namely, they were neutral.
The sentiment changed on Thursday, as 56% were long. It can be assumed that some traders took profits from their long positions.
Meanwhile, in the 100-pip range around the rate the orders were bullish, as 56% of pending orders were set to buy the GBP/USD.
Previously, orders were 51% to sell. Namely, they were neutral.