Note that the spike occurred a minute before the release. This happens during the aftermath of a scandal of BoE announcement information being released to some market participants before to the rest of the public. A report by Dukascopy Analytics looking into the case is set to be released shortly.
Meanwhile, during the surge, the rate passed the technical resistance of the 55, 100 and 200-hour simple moving averages and the simple weekly pivot point at 1.3072.
Economic Calendar
The US Advance GDP will be released at 13:30 GMT. A move from 11.5 to 36.1 pips can be expected.The week's event historical data tables have been published. Click on the link below to read the article. In the meantime, note that next week's tables are set to be published until 16:00 GMT on Thursday.
Read More: 27.01-31.01 Event Historical Reactions
GBP/USD short-term review
At the time of writing, the markets were still taking in the news from Bank of England. However, the technical chart can still be analysed.In general, as the rate has passed the weekly pivot point at 1.3072, it has no resistance as high as the 1.3120 level. This level provided resistance and support to the rate throughout January.
If this level holds, the rate would trade just below it until it is approached by the support of the hourly simple moving averages. On the other hand, if the resistance fails earlier than the approach of the SMAs, it would aim at the weekly R1 at 1.3181.
Hourly Chart
On the daily candle chart, the rate is back up above the 55-day simple moving average, which had begun to provide resistance on Wednesday.
In general, take into account how the SMA was being pierced and ignored by the rate since January 10. It appears that on its own, the 55-day SMA cannot impact the GBP/USD.
Daily chart
Read More: Technical Analysis
Traders are short
Since the middle of Wednesday's London trading hours, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 68% of orders were to sell and 32% were buy orders.
The orders were 58% to buy on Wednesday.
Meanwhile, trader orders were set to sell. In the 100-pip range, 68% of orders were to sell and 32% were buy orders.
The orders were 58% to buy on Wednesday.