During today's morning, the GBP/USD exchange rate surged to the 1.2450 level.
Note that the rate is testing the resistance level formed by the weekly R1 and the monthly R2. Thus, a reversal south could occur.
Economic Calendar
Today, the US Retail Sales data will be published at 12:30 GMT. Last time, the GBP/USD exchange rate moved for almost 19 pips.
Next week there will be a couple of data releases that could move the GBP/USD currency pair.
On Wednesday, September 18, the UK CPI data will be published at 8:30 GMT. Since March, the given released has moved the GBP/USD rate from 13.6 to 23.1 pips.
Also, on Wednesday the FOMC Statement and the Federal Fund Rate data will be released at 18:00 GMT. The previous release moved the rate for 62.5 pips.
Next week will end with two data releases from the UK on Thursday, September 19. Firstly, the UK Retail Sales data will be released at 8:30 GMT. Secondly, the BoE Monetary Policy Statement and the Official Bank Rate will be published at 11:00 GMT.
GBP/USD short-term review
On Thursday, the GBP/USD exchange rate consolidated at the 1.2340 level. During today's morning, the rate surged to the resistance level formed by the weekly R1 and the monthly R2 at 1.2450.If the given resistance holds, it is likely that a reversal south could occur in the nearest future, and the currency pair could target the support cluster formed by the 55– and 100-hour SMAs, as well the monthly R1 in the 1.2314/1.2344 area.
Otherwise, it is likely that the British Pound could continue to extend gains against the US Dollar. In this case the rate could target area between the psychological levels at 1.2500 and 1.2550.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average. The SMA on Tuesday began to provide support to the monthly pivot point at 1.2314.
Namely, there is no longer a barrier to the pair's surge on the daily candle chart.
Daily chart
Read More: Technical Analysis
Traders became short
On Friday, 54% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were strongly bearish, as 81% of orders were set to sell and 19% were to buy.
Meanwhile, trader set up pending orders in the 100-pip range were strongly bearish, as 81% of orders were set to sell and 19% were to buy.