The surge of the GBP/USD currency exchange rate has reached above the 1.3550 mark. In general, it was initially seen that the pair has no technical resistance as high as the weekly R2 simple pivot point at 1.3650. Meanwhile, it was expected that the 1.3600 mark could act as resistance.
Economic Calendar
On Thursday, the Bank of England will release its Monetary Policy Summary at 12:00 GMT. Expect GBP volatility, as the bank already started to hike interest rates in December.
The day will end with the US ISM Services PMI, which might cause minor volatility.
On Friday, the US is going to publish employment data at 13:30 GMT.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
However, additional analysis revealed that the recent surge of the currency pair has been occurring in a channel up pattern. The pattern could continue to guide the rate higher, but it would slow down the GBP against the USD. Although, note that on Thursday at 12:00 GMT, the Bank of England will make a rate statement. It is highly likely that the channel is set to be broken.In the near term future the rate's surge could eventually reach the resistance of the 1.3600 mark, before aiming at the 1.3650 level. On the other hand, a decline of the GBP/USD could look for support in the 1.3550 mark, the weekly R1 simple pivot point at 1.3528 and the lower trend line of the narrow channel up pattern.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate appears to be ignoring technical levels, as the 50 and 100-day simple moving averages did not manage to impact the currency exchange rate for more than one trading session. Namely, the two SMAs had acted as resistance.Daily chart
Read More: Technical Analysis
Short sentiment increases
Since Monday, traders were mostly bearish, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to sell the GBP against USD.
On Wednesday the situation changed, as 62% of volume was short and 68% of orders were to sell.
Since Monday, traders were mostly bearish, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 69% to sell the GBP against USD.
On Wednesday the situation changed, as 62% of volume was short and 68% of orders were to sell.