The strong technical resistance cluster did not hold on Wednesday. The scenario of a surge occurred and the rate reached the scenario's target of 1.2483.
On Thursday, the pair continued its surge, as it passed the 1.2500 exchange rate level.
Economic Calendar
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
Last month, this data release caused a major move. Take a look at all of the historical reaction tables by clicking on the link below.
GBP/USD short-term review
It is likely that the currency pair could gain support from the weekly R1 and the monthly PP at 1.2490. Thus, it is likely that some upside potential could prevail in the market, and the pair could target the 1.2600 level.Meanwhile, if the rate fails to exceed the 1.2550 mark, it is likely that the British Pound could trade sideways against the US Dollar in the nearest future.
Also, it is unlikely that bears could prevail, and the pair could decline below the Fibo 50.00% at 1.2418.
Hourly Chart
On the daily candle chart, the rate has ended its decline, which was guided by a channel down pattern. The pattern represented the Bank of England's monetary easing efforts.
In addition, during the recent surge, the rate gained the fundamental support that was created by the new infrastructure program announced by the UK government on Tuesday.
A more in depth review of the surge is set to be published in the near term future.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Thursday, 58% of trader open position volume on the Swiss Foreign Exchange was in long positions.
At mid-day on Wednesday, the sentiment was 63% long.
Meanwhile, in the 100-pip range around the rate, 70% of pending orders were set to sell the GBP/USD.
The orders were 59% to buy on Wednesday. Traders appear to have made various term long trades, profiting from the recent surge.
At mid-day on Wednesday, the sentiment was 63% long.
Meanwhile, in the 100-pip range around the rate, 70% of pending orders were set to sell the GBP/USD.
The orders were 59% to buy on Wednesday. Traders appear to have made various term long trades, profiting from the recent surge.