On Thursday morning, the GBP/USD remained near the previous trading levels. Meanwhile, take into account that it was approached by the technical support of the 55 and 100-hour simple moving averages.
From a technical analysis perspective the GBP/USD should surge. However, the Bank of England was about to make a monetary policy statement.
Economic Calendar
The BoE Monetary Policy Statement and the Official Bank Rate will be published at 11:00 GMT.
GBP/USD short-term review
During the morning hours of Thursday's London trading, the GBP/USD currency exchange rate was trading just above the support of the 55 and 100-hour simple moving averages and a monthly pivot point near 1.2460.Meanwhile, the rate had no technical resistance, signalling that the pair should surge. However, the GBP/USD has failed to pass a resistance on the daily candle chart at 1.2500.
If this level gets broken, the rate could surge.
Hourly Chart
On the daily candle chart, the rate has reached the resistance of the 100-day simple moving average at 1.2500.
The resistance has to be passed for the rate to resume its surge, which could reach the 1.2600 level.
In the meantime, note that the 55-day SMA was providing support at the 1.2320 level together with weekly and monthly pivot points.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since the middle of Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 54% of orders were set to sell and 46% were to buy.
Previously, 62% of trader orders were to buy.
Since the middle of Wednesday's London trading session, 60% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 54% of orders were set to sell and 46% were to buy.
Previously, 62% of trader orders were to buy.