The GBP/USD has extended its surge beyond initial expectations, as the currency exchange rate reached above the 1.4000 mark during early hours.
Moreover, the currency exchange rate no longer had any technical resistance as high as the 1.4110 level.
Economic Calendar
The week will end for the GBP/USD with the US PMIs at 14:45 GMT. The release could cause a move from 7.8 to 30.5 pips.
Next week, the US Preliminary GDP will be published on Thursday at 13:30 GMT. The rate has moved from 11.5 to 16.8 pips.
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
The GBP/USD managed to pass the resistance of the weekly R1 on Thursday. On Friday morning, the GBP had extended its gains against the USD, as the rate had reached above the weekly R2 simple pivot point and the 1.4000 mark.By reaching above the weekly R2 simple pivot point, the rate had no technical resistance as high as the weekly R3 at the 1.4109 level. However, the 1.4050 and 1.4100 round price levels should provide the pair with psychological resistance. In theory, these levels should be reached one after another.
On the other hand, the pair should consolidate its gains by retracing down to the pivot point at 1.3988 or trading sideways above the 1.4000 mark until the simple moving averages catch up.
Hourly Chart
On the daily candle chart, the pair has broken the upper trend line of the channel up pattern, which had guided it since the start of September. It signals that additional gains are possible.
Daily chart
Read More: Technical Analysis
Buy orders are close by
On Friday, 75% 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 72% to sell the GBP/USD pair.
On Thursday, the orders were 72% to buy.
On Friday, 75% 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 72% to sell the GBP/USD pair.
On Thursday, the orders were 72% to buy.