The 1.3860 level provided the GBP/USD with resistance and caused a retracement down to the 1.3810 level. At that level the currency exchange rate found support in the 55-hour simple moving average.
In the near term future, the currency exchange rate was expected to be pushed up by the SMA into another test of the 1.3860 mark.
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
Since yesterday, the GBP/USD exchange rate has been trading sideways in the 1.3850 area.It is likely that the currency pair could gain support from the 55-hour SMA, as well the weekly R1 near 1.3800. Thus, some upside potential could prevail in the market. In this case the pair could target the 1.3960 level.
In the meantime, note that the exchange rate is pressured by the weekly R2 at 1.3879. If the predetermined resistance level holds, the rate could continue to trade sideways in the nearest future.
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.
By the middle of Thursday's European trading hours, the sentiment was 72% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 68% to sell the GBP/USD pair.
On Wednesday, the orders were 74% to sell.
On Wednesday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Thursday's European trading hours, the sentiment was 72% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 68% to sell the GBP/USD pair.
On Wednesday, the orders were 74% to sell.