The GBP/USD has continued to trade in the previous trading sessions' range. Namely, it made another failed attempt to surge before retracing back down to the 1.2050 level.
Meanwhile, it was spotted on Wednesday that the currency exchange rate faces psychological resistance provided by the 1.2100 level. Previously it was not spotted, as at that level the 55 and 100-hour SMAs were located, which were assumed to be the main causes of the failed surges.
US and UK Retail Sales
On Thursday, UK Retail Sales will be published at 08:30 GMT. Since February the event has caused moves from 11.5 to 24.5 base points.
Later in the day, at 12:30 GMT, the US Retail Sales will be published. The GBP/USD has moved from 11.3 to 28.9 pips since April.
GBP/USD short-term review
On Thursday morning, the GBP/USD broke the resistance of the 55 and 100-hour simple moving averages and began a surge to the pivot point that was located at the 1.2090 level.The pivot point was expected to be broken, as it had failed to stop the pair's surges three times during the week. Afterwards the rate would once more test the resistance of the 1.2100 level.
If the 1.2100 would fail to hold, the 200-hour SMA at 1.2110 would be reached next.
On the other hand, the rate might bounce off the 1.2100 level and resume its sideways trading that has been occurring this week.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
Note that recently the pair tested the lower trend line of the pattern, which held and was one of the causes of the surge on Monday.
In general, due to the angle of the pattern the rate could trade in any direction and it would still be in consistency with the channel.
Daily chart
Read More: Technical Analysis
Traders remain long
On Thursday, 73% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 48% of orders were set to buy and 52% were to sell.
The open position volume proportion and pending orders have remained mostly unchanged during the week.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 48% of orders were set to buy and 52% were to sell.
The open position volume proportion and pending orders have remained mostly unchanged during the week.