This week, the top event will be the FOMC Meeting Minutes release on Wednesday at 19:00 GMT. The minutes are a protocol of the last Federal Reserve monetary policy committee meeting. They could provide more information on how the US Dollar rate setters make their decisions.
In addition, on Thursday, the UK Manufacturing and Services sector Purchasing Managers Index release at 09:30 GMT could impact the rate through an adjustment of the Pound's value.
Meanwhile, some impact could be created by the US Manufacturing and Services PMIs at 14:45 GMT.
Next week, note the upcoming Wednesday's release of US Preliminary GDP at 13:30 GMT.
GBP/USD hourly chart analysis
The ongoing surge could be slowed down by the 1.2675/1.2690 range, before the 1.2700 mark is once again reached. If the 1.2700 does not act as resistance, the rate could surge to the 1.2760/1.2775 zone. Higher above, note the 1.2800 level.In the meantime, a decline could look for support in the 1.2590/1.2610 range and the 50, 100 and 200-hour simple moving averages. Further below, note the 1.2535/1.2540 support zone. Below all of these levels, the 1.2500 is expected to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the rate is above the 100 and 200-day simple moving averages. The pair appears to have been reversed by the 100-day SMA.In regards to resistance, the 50-day simple moving average is acting as resistance near 1.2680. This moving average acted as support during the second part of January.
Daily chart
Read More: Technical Analysis
Traders are long
On Monday, traders were 59% long, as that proportion of all open positon volume on Swiss Foreign Exchange was in bullish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 55% to buy.
By mid-Tuesday, traders had become 58% long and orders were 56% to sell.
Meanwhile, pending orders in the 100-pip range around the rate were 55% to buy.
By mid-Tuesday, traders had become 58% long and orders were 56% to sell.