The GBP/USD has passed the resistance of the 200-hour simple moving average. It has resulted in a surge, which on Thursday aimed at the 1.3982 level, where a weekly R1 simple pivot point was located at.
Meanwhile, a channel up pattern was spotted, which has guided the rate during this week.
Economic Calendar
The notable data releases for this pair this week are over. Next week's events are set to be described in the Friday's publication.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
In the case of the rate passing the pivot point at 1.3982, the pair could test the resistance of the 1.4000 mark. Afterwards, if the 1.4000 doesn't hold, the pair could gradually surge as high as 1.4100 while remaining in the channel up pattern.On the other hand, if the pivot point holds, the rate could trade sideways until Monday, when the currency rate would reach the lower trend line of the channel up pattern. In addition, a drop might happen. A potential decline would test the supporting trend line and the 55 and 200-hour simple moving averages near 1.3900.
Hourly Chart
On the daily candle chart, the rate has found support in the 1.3800 mark and ended its retracement down that started after the pair encountered resistance at 1.4200.
In addition, the 55-day SMA had almost caught up with the rate. It appears that the SMA is capable of pushing the GBP/USD up by just approaching it by approximately 50 base points.
Daily chart
Read More: Technical Analysis
Traders set up sell orders
Since Wednesday, 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 56% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to sell the GBP/USD pair.
Previously, 52% of orders were to sell.
Since Wednesday, 55% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, the sentiment was 56% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to sell the GBP/USD pair.
Previously, 52% of orders were to sell.