On Tuesday, the GBP/USD surged due to the support of the 100-hour simple moving average, which stopped the decline of the rate at 1.2210.
In general, it was expected that the surge could eventually reach the 1.2300 level.Economic Calendar
On Thursday, at 12:30 GMT the US Preliminary GDP is scheduled to be published. The event has caused moves on GBP/USD charts from 8.0 to 16.7 pips since February.
GBP/USD short-term review
During Monday, the GBP/USD exchange rate reversed south from the upper boundary of the short-term ascending channel at 1.2300. During today's morning, the rate was testing the support level—the weekly PP at 1.2220.If the given support level holds, it is likely, that the currency pair could reverse north within the following trading hours. Note that the nearest resistance level is the monthly PP at 1.2330.
It is unlikely, that some downside potential could prevail in the market, as the pair is supported by the 100-hour SMA, currently located at 1.2209. However, the rate could consolidate between the given support and the 55-hour SMA at 1.2241.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
The pair has been doing a surge in the borders of the large pattern in consistency with the theory that a short term surge should occur after bouncing off the lower trend line of a channel down pattern.
In general, the rate should be pushed down by the upper trend line of the pattern near 1.2300.
Daily chart
Read More: Technical Analysis
Traders are long
On Monday, 65% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
By the middle of Tuesday's trading, the sentiment had become 63% long.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 57% of orders were set to sell and 43% were to buy.
By the middle of Tuesday's trading, the sentiment had become 63% long.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 57% of orders were set to sell and 43% were to buy.