By the middle of Thursday's London trading, the GBP/USD remained near previous day's trading levels. Although, the pair broke the resistance of the weekly S1 and the 55-hour simple moving average near 1.2230.
Due to that reason another surge to the resistance levels below 1.2300 was expected.
Economic Calendar
On Thursday, the US CPI will be released at 12:30 GMT. The event has caused moves from 14.8 to 23.0 pips.Meanwhile, historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
GBP/USD short-term review
On Thursday morning, the rate passed the resistance of the weekly S1 and the 55-hour SMA.In general, a surge was expected. The rate was set to reach first for the 100-hour SMA at 1.2269. Afterwards, a monthly pivot point and a 200-hour SMA would be tested at 1.2280 and 1.2285.
If the rate passes these resistance levels, it would next test the weekly pivot point at 1.2321. On the other hand, if the resistances hold and push the rate down, it would retreat to the support of the 55-hour SMA and the weekly S1 near 1.2230.
Hourly Chart
On the daily candle chart, the rate once more showed that the 55-day simple moving average could be ignored. It did not hinder Tuesday's decline.
Meanwhile, take into account that a new long term channel down pattern has been added to the chart.
Daily chart
Read More: Technical Analysis
Traders are long on GBP/USD
On Thursday, 61% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader orders were almost neutral. In the 100-pip range 53% of orders were to sell and 47% were to buy.
Meanwhile, trader orders were almost neutral. In the 100-pip range 53% of orders were to sell and 47% were to buy.