As expected, the GBP/USD looked for support in the 55 and 100-hour SMAs, which caused a rates surge. By the middle of Thursday's GMT trading hours, the currency exchange rate was already testing the 1.2000 level.
In the meantime, the 1.2000 level's resistance was strengthened by the upper trend line of a rising wedge pattern.
Economic Calendar
The week will end with the US Final GDP data release on Thursday at 12:30 GMT. A move from 8.1 to 52.0 pips has occurred on the rates charts since December 2018. However, the March 2019 52.0 pip move was an anomaly. The second largest move was 16.0 pips.
Meanwhile, this week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate revealed the upper wedge pattern. During Thursday morning, the rate was trading in the 1.1900 area.From the theoretical point of view, it is likely that the currency pair could continue to trade within the given pattern. In this case the pair could reach the 1.2000 level.
It is unlikely that a breakout south could occur in the nearest future due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.1730/1.1835 area.
Hourly Chart
On the daily candle chart, the currency exchange rate had not technical resistance as high as the monthly pivot point at the 1.2178 level.
Daily chart
Read More: Technical Analysis
Bullish sentiment continues to increase
On Monday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions. By the middle of Tuesday's GMT trading hours, the sentiment was 68% long.
On Wednesday, the sentiment was already 70% long, and on Thursday, already 72% long.
Traders were long before the recovery started. Moreover, others had joined, as the pair breaks resistance levels.
On Wednesday, the sentiment was already 70% long, and on Thursday, already 72% long.
Traders were long before the recovery started. Moreover, others had joined, as the pair breaks resistance levels.