Meanwhile, traders have added to their short positions in expectations of a decline, as 75% of open position volume at Dukascopy was short. In addition, pending trading orders were 68% to sell, which indicates that more traders will add to short positions in the near term future.
Economic Calendar
The financial markets might move on Wednesday, at 18:00 GMT. At that time, the Federal Reserve Meeting Minutes will be published. The minutes is a protocol of the prior meeting held by the Federal Open Markets Committee on the US monetary policy. New information might cause an adjustment of the US Dollar's value.
On Thursday, moves could be created by the publication of the UK and US S&P Global Services and Manufacturing sector Purchasing Managers Index numbers.
However, reaction could be muted, as markets wait for the Friday's Jerome Powell's speech at the Jackson Hole Symposium at 14:00 GMT.
GBP/USD hourly chart analysis
If the rate resumes its surge, it will face the resistance of the recently marked 1.3045/1.3052 range. If this range fails, the pair could be slowed down by the weekly R2 simple pivot point at 1.3077.On the other hand, a decline of the Pound against the US Dollar is expected to look for support in the 1.2995/1.3000 zone, the weekly R1 simple pivot point at 1.3009 and the ascending 50-hour simple moving average. Further below, note the 100-hour simple moving average and the 1.2980 and 1.2940 levels that have impacted the pair.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the surge has been consistent with the large scale channel pattern.The rate encountered resistance in the upper trend line, July. Afterwards, a decline occurred to the support of the lower trend line of the channel and the 100 and 200-day simple moving averages. This event was followed by the ongoing surge.
If the surge continues, the pair might reach the upper trend line of the pattern by the end of August.
Read More: Technical Analysis
Traders hold onto short positions
On Monday, traders were shorting, as 70% of open position volume at Dukascopy was in short positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 59% to buy.
By mid-Wednesday, traders were 75% short. Meanwhile, pending orders were 68% to sell the GBP against the USD.
More short positions could be added to the already massive bearish Dukascopy trader stance.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 59% to buy.
By mid-Wednesday, traders were 75% short. Meanwhile, pending orders were 68% to sell the GBP against the USD.
More short positions could be added to the already massive bearish Dukascopy trader stance.