The 55 and 100-hour simple moving averages provided the GBP/USD with the needed support to start a surge. On Tuesday, the surge reached the weekly R1 pivot point at 1.2593, from which it bounced off.
Afterwards, since retreating to the 1.2550 mark, the currency exchange rate has been trading sideways.
Economic Calendar
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
GBP/USD short-term review
In theory, the currency exchange rate should trade sideways until the 55 and 100-hour simple moving averages approach it again and push it higher. In the case of a surge, the rate would test the resistance of the weekly R1 simple pivot point at 1.2593 and the 1.2600 mark.On the other hand, if the SMAs fail to push the rate through the resistance, the rate could decline down to the monthly pivot point at 1.2490.
Hourly Chart
On the daily candle chart, the rate has found additional support in the 55 and 100-day simple moving averages. The SMAs were located at the 1.2422 and 1.2445 levels.
Daily chart
Read More: Technical Analysis
Traders are long
Since Tuesday, 59% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 51% of pending orders were set to sell the GBP/USD.
Previously, orders were 53% to buy.
Meanwhile, in the 100-pip range around the rate the orders were neutral, as 51% of pending orders were set to sell the GBP/USD.
Previously, orders were 53% to buy.