After failing to pass the 1.2180 level, the GBP/USD declined to start trading in a 30 pip range between 1.2110 and 1.2150.
On Thursday morning, it could be observed that the rate had found support in a combination of the 200-hour simple moving average and a weekly pivot point near 1.2110.Economic Calendar
There are no more data releases or other events scheduled for this week, which might impact the GBP/USD currency exchange rate.
GBP/USD short-term review
The encounter of the support levels near the 1.2110 level on Thursday morning caused a surge. The surge managed to break the resistance of the 55 and 100-hour simple moving averages at 1.2138.As the rate passed the simple moving averages, it faced no technical resistance as high as the 1.2212 level. Due to that reason a continuation of the surge was expected.
Although, note that the pair's climb higher is still expected to be slowed down by the psychological resistance at 1.2180.
On the other hand, the pair might continue to trade sideways, as the 1.2150 level had managed to keep the rate down since the middle of Wednesday's London trading.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
Recently, the pair reversed north from the lower channel line. Thus, form a theoretical point of view, the pair could trade upwards in the short term.
However, due to the angle of the pattern the rate could trade in any direction and it would still be in consistency with the channel.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Wednesday, 72% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
On Thursday, the sentiment decreased to 67%.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 53% of orders were set to sell and 47% were to buy.
On Thursday, the sentiment decreased to 67%.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 53% of orders were set to sell and 47% were to buy.