The GBP/USD has extended its surge to the 1.3100 level. Moreover, technical charts indicated that, if the rate passes the 1.3100 level, it would reach for 1.3180.
Namely, the rate would pass the resistance of a dominant pattern and the 200-day simple moving average. Afterwards it would reach for the weekly R2 at 1.3180.
The British Pound appreciated against the US Dollar, following the UK Average Earnings Index and Unemployment Rate release on Tuesday at 09:30 GMT. The GBP/USD exchange currency rate gained 7 pips or 0.05% during a minute, right after the release. The British Pound continued trading at the 1.2910 area against the US Dollar.
The Office for National Statistics released UK Average Earnings Index data that came out better-than-expected of 3.4%, compared to the forecasted 3.3%. Note, that the UK Unemployment Rate was released at the same time with the UK Average Earnings Index.
The Office for National Statistics comments: "Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 3.3% excluding bonuses, and by 3.4% including bonuses, compared with a year earlier".
Quiet week for macro releases
On Thursday, main attention of fundamental event traders will be on the ECB Rate Announcement at 12:45 GMT. The volatility on the EUR charts usually increases during the ECB Press Conference, which will start at 13:30 GMT.
Meanwhile, oil traders will most likely catch a one percent move at 15:30 GMT. The data release has been providing moves of more than one percent during the last month and a half.
GBP/USD short term review
During Wednesday's trading session, the previously drawn pattern was broken. Due to that fact, the chart was thoroughly reviewed to make a new pattern.Brexit negotiation about Ireland border pushed the British Pound to appreciate against the US Dollar. There are expected two scenarios, if the United Kingdom and Ireland will agree not to build an outpost in Northern Ireland, most likely, the rate will break the upper boundary of the dominant pattern line at 1.3100 mark to trade towards the weekly R2 at 1.3181.
On the other hand, if the United Kingdom and Ireland will not agree on the deal, to the rate could go downwards to trade at the 1.2950 level.
Hourly Chart
On the daily chart, the rate is facing the combined resistance of a dominant descending pattern and the 200-day simple moving average.
Moreover, both of these levels are strengthening the psychological resistance of the 1.3100 level.
Daily chart
Meanwhile, trader set up pending orders in the 100-base point range were once more set to sell. On Thursday, 60% of trader pending orders were set to sell.
In general, it can be seen that the traders that trade through the Swiss Foreign Exchange are shorting the GPB/USD. Moreover, they are ready to open additional short positions.