The GBP/USD jumped on Thursday due to the unexpected Bank of England rate hike at 12:00 GMT. The rate's jump stopped at the weekly R2 simple pivot point at 1.3371. The event was followed by a decline, which on Friday found support in the 50-hour simple moving average and the December high level zone at 1.3277/1.3288.
On December 16, the Bank of England unexpectedly hiked interest rates and caused a surge of the GBP against peer currencies. Meanwhile, corporate and government bond purchases would remain unchanged.
Economic Calendar
On Wednesday, at 13:30 GMT, the US Dollar might react to the publication of the US Final GDP. Although, the only release for more than a year, which caused a noteworthy move was the latest one, September 30 2021.
On Thursday, at 13:30 GMT the US Durable Goods Orders and Core Durable Goods orders data will be published. However, during the prior months the data release has not caused increases of volatility.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
In the case of the 50-hour providing enough support for a surge, the GBP/USD could reach for the weekly R1 simple pivot point at 1.3324. Afterwards, the 1.3340 might act as resistance. Even higher above, the weekly S2 simple pivot point is located at 1.3371.Meanwhile, a potential decline of the pair below the 1.3277 level might find support in the 100-hour simple moving average near 1.3260. Below the 100-hour SMA, the 200-hour SMA and the weekly simple pivot point at 1.3243.
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. Note the lower trend line of the pattern near 1.3150. Most recently, the currency pair bounced off the trend line.Daily chart
Read More: Technical Analysis
Long sentiment increases
On Thursday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP against USD.
On Friday, the positions were 67% long and the pending orders were 65% to buy.
On Thursday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP against USD.
On Friday, the positions were 67% long and the pending orders were 65% to buy.