The surge of the GBP/USD has continued, as on Wednesday the rate reached above the 1.3850 mark.
In the near term future, the surge of the pair was expected to reach the weekly R2 simple pivot point at 1.3879.
Economic Calendar
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published. The GBP/USD has recently moved from 8.7 to 14.9 pips on the publications.
The UK Preliminary GDP will be published on Friday at 07:00 GMT. Our data shows that it has had a range of 9.5 to 23.6 pips. However, note that the reactions have been declining in size since the coronavirus has been impacting the economy.
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
Yesterday, the GBP/USD exchange rate exceeded the weekly R1 located at 1.3809.It is likely that the currency pair could face the resistance level—the weekly R2 at 1.3879. Thus, a reversal south could occur. Note that the pair could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3688/1.3771 range.
In the meantime, note that the exchange rate could gain support from the weekly R1 at 1.3809 and extend gains in the nearest future. In this case the rate could target the weekly R3 at 1.4000.
Hourly Chart
On the daily candle chart, the pair has broken the resistance of the previous 2021 high level and surged.
In regards to the future, the pair was expected to test the upper trend line of the channel up pattern, which has guided the rate since September.
Daily chart
Read More: Technical Analysis
Traders are mostly short
On Wednesday, 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 74% to sell the GBP/USD pair.
On Wednesday, 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 74% to sell the GBP/USD pair.