The GBP/USD did not follow technical levels on Wednesday, as it surged breaking various technical levels. By the middle of Thursday's trading, the exchange rate had touched the 1.2950 levels.
If the surge would continue, it would test resistance at 1.2956 and 1.2974.
Economic Calendar
There are no more events scheduled for this week that might impact the GBP/USD.The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
Read More: 18.11-22.11 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reversed north from the lower boundary of the medium-term ascending channel at 1.2895. During Thursday morning, the rate was trading at the 1.2940 mark.From a theoretical point of view, it is likely that the currency pair could continue to extend gains in the short run. Note that that the pair would have to surpass the resistance level formed by the weekly R1 at 1.2956.
However, if the given resistance holds, the exchange rate could trade sideways, supported by the 55– and 100-hour SMAs at 1.2927. Also, it is unlikely that some downside potential could prevail, and the rate could drop lower than the 200-hour SMA at 1.2888.
Hourly Chart
On the daily candle chart, an adjustment has been made to the almost horizontal channel pattern. If one uses the high and low levels of the daily candles instead of open and close prices, a different picture from the previous appears.
Namely, the pattern was not pierced during the recent surge. It is still intact and its upper trend line provided resistance to the decline, which started on Tuesday.
Daily chart
Read More: Technical Analysis
Traders are mostly short
Since Tuesday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 56% of orders were to sell and 44% were to buy.
Previously, the orders were 53% to buy.
Meanwhile, trader orders were set to sell. In the 100-pip range, 56% of orders were to sell and 44% were to buy.
Previously, the orders were 53% to buy.