The GBP/USD currency pair bounced off a support level formed by the 200– hour simple moving average at 1.4130 on Monday.
As a result, the Pound Sterling surged by 46 pips or 0.32% against the US Dollar during yesterday's trading session.
Economic Calendar
At 12:30 GMT on Thursday, the US Preliminary GDP is set to be published. This event has caused GBP/USD moves from 11.5 to 116.8 pips.
Also on Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. Our analysts have been ignoring this event since February, as it did not have an impact on the USD. This week, another check of the data was done.
The GBP/USD has moved from 9.5 to 22.8 pips since April 22 due to the Unemployment Claims.
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
Technical indicators suggested buying signals on the daily time-frame chart. The bullish traders pressured the exchange rate higher towards the 1.4220 level within this session by 0730 GMT.However, at 0730 GMT, buyers have encountered the resistance from the 1.4200 zone and the rate declined 77 pips to 1.4123, breaking the 55-, 100- and 200-hour simple moving averages.
Then, the rate climbed back to the 1.4160 level, breaking the 200-h SMA and found the resistance at 55- and 100- SMAs.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD remains in the borders of the channel up pattern, which has guided it since early April. The rate is testing the upper trend line of the pattern.In addition, note that the rate reversed its February surge just before reaching the 1.4250 level. Namely, the surge ended at the 1.4243 mark.
Daily chart
Read More: Technical Analysis
Traders set up sell orders
Since Friday, traders have been short, as 73% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, in the 100-pip range around the rate, the pending orders were 59% to buy. Previously, 64% of orders were to buy.
Since Friday, traders have been short, as 73% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, in the 100-pip range around the rate, the pending orders were 59% to buy. Previously, 64% of orders were to buy.