- The Swiss market is 58% bullish on the pair
- 75% of pending orders in the 100-pip range are set to SELL
- US Employment data in focus
After trading almost sideways for the past 24 hours, a surge began on the GBP/USD charts. All attention was on a technical pattern's resistance line. If it would be passed, the GBP/USD should gain more ground.
The British Pound appreciated against the US Dollar, following the UK Services PMI release on Wednesday at 08:30 GMT. The GBP/USD exchange currency rate gained 14 pips or 0.11% right after the release. The data release did not affect significantly the currency exchange rate. The rate continued trading at the 1.2820 level.
The Markit released UK Services PMI data, which came better-than-expected. The index was 54.3 compared with forecast 53.9.
The Markit comments: "Backlogs of work increased for the fourth month running in August, which pointed to sustained pressure on operating capacity at service sector companies. A number of firms linked rising volumes of unfinished business to difficulties replacing departing staff".
US Employment data in focus
On Friday, at 12:30 GMT three US employment data sets will be published. They are expected to cause a reaction in the financial markets larger than any other US data release.
Dukascopy Analytics will cover the data release live on the bank's webinar platform. The event will begin at 12:20 GMT.
GBP/USD short term review
In regards the near future, most likely the rate will surge upwards due to a strong support level of the monthly PP at the 1.2924 level and the 200-hour SMA at the 1.2920 level. The rate will pass the weekly PP at the 1.2946 mark to move closer to the upper boundary of the large descending channel, which might be broken during today's session.On the other hand, the British pound may use a strong resistance of the large channel to bounce back into the pattern at the 1.2970 level.
Hourly Chart
The currency exchange rate has fully confirmed the ascending junior pattern of the daily chart. On Friday the currency exchange rate broke through the resistance levels near the 1.2950 level and immediately jumped.
Daily chart
The Swiss trader sentiment remains largely bullish. Namely, traders of the Swiss Foreign Exchange were long in 57% of all of their open positions. These positions were present before the surge. This means that these Dukascopy associated traders have gained during the surge.
In the meantime, trader set up orders, which indicate where the rate most likely will go next, are set to buy the pair in 51% of all cases.
Meanwhile, OANDA traders remain largely bullish, as 67% of open positions are long at the brokerage. In the meantime, traders at SAXO Bank are 55% long on the GBP/USD pair.
Spreads (avg, pip) / Trading volume / Volatility