The traders, which went long on the expectations of a surge to the 1.2300 mark, where surprised on Friday morning. The GBP/USD had reached the 1.2500 level.
Moreover, if trailing stop losses had been set properly, the whole move of approximately 250 pips could have been captured.
Economic Calendar
This week data releases are over. Next week, there will be many UK macroeconomic data releases, which are expected to impact the GBP/USD through the adjustments of the GBP value.On Tuesday the UK Average Earnings Index is set to be published at 08:30 GMT. Since May 2019, the event has caused moves on the GBP/USD from 11.0 to 26.5 base points.
On Wednesday, at 08:30 GMT the UK Consumer Price Index is scheduled to be released. The event has caused moves from 13.6 to 23.1 pips.
Later in the day, at 12:30 GMT the US Retail Sales could impact the rate through the value of the USD. Namely, since May this event has caused moves on the GBP/USD from 10.5 to 28.9 base points.
On Thursday, the UK Retail Sales are set to be published at 08:30 GMT. This data release has caused adjustments of the GBP/USD rate from 11.5 to 24.5 pips.
Meanwhile, take into account that next week there will be other events, which are expected to cause reactions on other currency exchange rates. Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
GBP/USD short-term review
The surge of the GBP/USD was purely fundamental, as the UK and Ireland have found a solution for their Brexit issues.On Friday morning, the rate had already gained more than 250 pips and was piercing the 1.2500 mark. Above that level, it would meet with technical resistance levels at 1.2528, 1.2576 and the 1.2600 mark.
However, these levels most likely would be ignored, if the details of the agreement continue to get announced. Today, better watch the news.
Hourly Chart
On the daily candle chart, the surge even broke the channel down pattern, which represented this year's decline.
Note that on the daily candle chart additional resistance could be provided by the 200-day simple moving average, which on Friday was located at the 1.2715 mark.
Daily chart
Read More: Technical Analysis
Swiss traders profit
On Thursday, 61% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
On Friday morning, 56% of volume was long. It can be assumed that a portion of traders took profits.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 53% of orders were to sell and 47% were to buy.
The orders had not changed since Thursday.
On Friday morning, 56% of volume was long. It can be assumed that a portion of traders took profits.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 53% of orders were to sell and 47% were to buy.
The orders had not changed since Thursday.