The GBP/USD eventually reached the lower trend line of the rising wedge pattern. The trend line provided enough support for a sharp surge to occur. By the middle of Tuesday's trading, the rate had reached the 1.3700 mark.
In the near term future, the rate was expected to test the resistance of the 1.3720 mark and afterwards the 1.3740 level.
Economic Calendar
On Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement at 19:00 GMT.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
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
During Tuesday morning hours, the GBP/USD exchange rate bounced off the lower line of the rising wedge pattern at 1.3610.From a theoretical point of view, it is likely that the currency pair could extend gains within the predetermined pattern in the short term. The pair could target the upper pattern line near 1.3760.
Note that the rate would have to pass the resistance of the round exchange rate levels at 1.3720 and 1.3740. These levels have provided resistance throughout the previous week.
Hourly Chart
On the daily candle chart, it can be observed that the 2021 high level zone was pierced on Thursday. It indicates that new high levels can be reached by the GBP against the US Dollar.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.
Since Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.