In the second half of Thursday's London trading session, the GBP/USD traded above the support of the 200-hour simple moving average at 1.2905.
In general, the rate was expected to surge as soon as the additional technical support of the 55 and 100-hour simple moving averages approaches the pair from below.
Economic Calendar
This week there are no more data releases, which might impact this rate.Meanwhile, next week's scheduled event historical data tables have been published. Some major moves can be expected. Click on the link below to read the article.
Read More: 02.12-06.12 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate skyrocketed to the resistance level formed by the weekly R1 at 1.29042. During Thursday morning, the rate was testing the given resistance.Note that the currency pair is supported by the 55-, 100– and 200-hour SMAs, currently located in the 1.2879/1.2906 area. Thus, some upside potential could prevail in the market, and the pair could reach the psychological level at 1.2960.
However, if the resistance level holds, it is likely that the British Pound could consolidate against the US Dollar in the short term. Also, it is unlikely that bears could prevail, and the rate could drop lower than the weekly PP at 1.2883.
Hourly Chart
On the daily candle chart, the rate is approaching the support of a large scale channel up pattern.
In the meantime, take a look at the still active medium scale channel down pattern. In the case of the rate breaking the weekly R1 simple pivot point, the pattern's upper trend line would provide resistance near 1.2965.
Daily chart
Read More: Technical Analysis
Short sentiment slightly decreases
On Thursday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 67% short.
Meanwhile, trader orders were set to sell. In the 100-pip range, 71% of orders were sell and 29% were to buy.
Previously, 55% of orders were to buy.
On Wednesday, the sentiment was 67% short.
Meanwhile, trader orders were set to sell. In the 100-pip range, 71% of orders were sell and 29% were to buy.
Previously, 55% of orders were to buy.