The GBP/USD ended trading sideways and surged. By the middle of Wednesday's GMT trading hours, the currency exchange rate had reached the 1.3660 level.
During the surge, the rate passed the resistance of the 55 and 100-hour SMAs and no longer had technical resistance. Due to that reason, the pair could test the round exchange rate level of 1.3700.
Economic Calendar
On Wednesday, the FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 7.2 to 10.1 pips. Note that there was an anomaly of 20.0 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The releases have caused moves, respectively, from 9.3 to 16.0 and 13.3 to 21.1 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 18.5 to 32.4 pips since August.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 55– and 100-hour moving averages near 1.3620 and trade upwards within the following trading session. Note that the nearest resistance level—the weekly R1, is located at 1.3765.In the meantime, it is unlikely that bears could prevail in the market in the short term, and the exchange rate could decline below the support level formed by the weekly S1 at 1.3508.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the channel up pattern, which has guided the rate since September.
In regards to the future, due to the angle of the resistance line, the rate still has room for a surge.
Daily chart
Read More: Technical Analysis
Traders set up sell orders
On Tuesday, 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell the GBP/USD pair. Previously, the orders were 51% to sell.
On Tuesday, 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell the GBP/USD pair. Previously, the orders were 51% to sell.