The surge of the GBP/USD was testing the resistance of the 1.3600 mark, as the US Fed Meeting Minutes caused a drop back to the 1.3500 level. By late Thursday trading hours, the rate had recovered and made an attempt to pass the 1.3560 level, before retreating below 1.3550.
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GBP/USD short-term review
In the case of a surge, the pair would have to pass the 1.3550 mark and the 50-hour simple moving average, before approaching the 1.3560 level. Higher above, the weekly R1 simple pivot point at 1.3585 and the 1.3600 mark are likely to provide resistance.On the other hand, a potential decline could look for support in the 100-hour simple moving average at 1.3520. Below the SMA, the 200-hour simple moving average and the weekly simple pivot point are set to provide support near 1.3490.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern.Most recently, the rate fluctuated between the support of the 50-day simple moving average at 1.3434 and the resistance of the 100-day simple moving average near 1.3558. Prior to the Fed drop. The rate had pierced the resistance of the 100-day SMA.
Daily chart
Read More: Technical Analysis
Short sentiment grows
On Thursday, traders were bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to sell the GBP against USD.
On Wednesday, 59% of volume was short and pending orders were 80% to sell.
On Thursday, traders were bearish, as 62% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to sell the GBP against USD.
On Wednesday, 59% of volume was short and pending orders were 80% to sell.