The 100-hour simple moving average once again caused a surge of the GBP/USD, which again tested the resistance of the 1.3380/1.3400 zone. The resistance held and by the middle of Thursday's European trading hours, the rate had once again retreated to the 100-hour SMA.
Near term future forecasts were based upon whether the 100-hour manages to cause another surge.
Economic Calendar
There are no more notable events scheduled for this week. However, one can research the events that already occurred.
In the meantime, note that the next week's event analysis is bound to be published in the Fundamental Analysis section by 18:00 GMT. On Friday, the usual short version for each pair will be added to the daily Trading Ideas publications.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 100-hour SMA, as well the weekly R1 in the 1.3350 area. Thus, some upside potential could prevail in the market.In the meantime, if the 1.3380/1.3400 resistance level holds, a reversal south could occur in the short term. In this case the pair could decline to the 200-hour SMA near 1.3290.
Meanwhile, the support trend line of the ascending triangle pattern has been adjusted to the recent higher low levels.
Hourly Chart
On the daily candle chart, the rate appears to be heading to the high level of September 1 at 1.3490.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, 60% of trader open position volume on the Swiss Foreign Exchange has been in short positions.
The sentiment changed on Thursday, as bears took over. Namely, 68% of open position volume was in short positions.
Meanwhile, on Thursday, in the 100-pip range around the rate the pending orders were 59% to sell the GBP/USD pair.
On Wednesday, the orders were 65% to sell the pair. A portion of these orders were executed.
Since Tuesday, 60% of trader open position volume on the Swiss Foreign Exchange has been in short positions.
The sentiment changed on Thursday, as bears took over. Namely, 68% of open position volume was in short positions.
Meanwhile, on Thursday, in the 100-pip range around the rate the pending orders were 59% to sell the GBP/USD pair.
On Wednesday, the orders were 65% to sell the pair. A portion of these orders were executed.