The pair remained between this range, despite Thursday morning news of decreasing inflation in various parts of Europe that caused a large decline of the Euro and spilled over into the Pound.
Economic Calendar
On Thursday, the US Preliminary GDP data publication might move the markets. The market consensus is that the US GDP has increased by 2.8% in the last quarter.
On Friday, markets will adjust to the publication of the US Core Price Index publication at 12:30 GMT.
GBP/USD hourly chart analysis
A move below 1.3170 is expected to result in the GBP/USD pair looking for support in the 1.3120/1.3135 range and the weekly simple pivot point at 1.3123. Moreover, the 200-hour simple moving average was approaching this range. Further below, note the 1.3100 and 1.3050 levels.In the case of a resumption of the prior surge, the rate would have to break the combined resistance of the 1.3220/1.3230 zone and the 50-hour simple moving average. If these levels fail, the pair will test the 1.3250/1.3265 zone, before approaching the 1.3300 mark and the weekly R1 simple pivot point at 1.3315.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the pair has broken the ascending channel pattern to the upside. Namely, the gains are more than it was expected to be possible.Moreover, the rate is above the 2023 high level. In general, the Pound has not been this high against the USD since early 2022.
Read More: Technical Analysis
Traders hold onto short positions
Last week, on Wednesday, traders were 75% short. Meanwhile, pending orders were 68% to sell the GBP against the USD.
On Monday, traders were still shorting, as 74% of open position volume at Dukascopy was in short positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 56% to buy.
This week, on Thursday, 74% of traders were short and orders were 61% to buy. It appears that traders are sitting on losses, but are prepared to close the positions.
On Monday, traders were still shorting, as 74% of open position volume at Dukascopy was in short positions.
In the meantime, trader set up pending orders in the 100-pip range above and below the current rate were 56% to buy.
This week, on Thursday, 74% of traders were short and orders were 61% to buy. It appears that traders are sitting on losses, but are prepared to close the positions.