The GBP/USD has managed to pass the resistance of the 55-hour SMA and traded sideways during the 24 hours up to 10:00 GMT, on Wednesday.
At that time the rate was located at technical resistance levels near 1.2090. The future scenarios were based on what will happen at this level.
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 Wednesday morning, the GBP/USD passed the resistance of the 55-hour simple moving average and surged up to the combined resistance of the 100-hour SMA and the weekly pivot point at 1.2090.If the rate breaks these resistance levels, the currency exchange rate would surge up to the 200-hour simple moving average, which was located near the 1.2120 level.
On the other hand, if the resistance holds, the pair would retrace down first to the 55-hour SMA at 1.2067 and afterwards could drop to the historical level at 1.2020.
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
Since Tuesday, 74% 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 49% of orders were set to buy and 51% were to sell.
The orders previously were 57% bullish.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 49% of orders were set to buy and 51% were to sell.
The orders previously were 57% bullish.