On Wednesday, the GBP/USD found support in the 1.3730 level and started a surge. The surge ignored most technical levels or broke their resistance with ease. By the middle of Thursday's European trading hours, the rate had reached the 100-hour simple moving average near 1.3810.
Economic Calendar
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
GBP/USD short-term review
If the pair passes the resistance of the 100-hour simple moving average, it would first aim at the weekly simple pivot point at the 1.3833 level. Above the pivot point, the rate could find resistance at 1.3845. The rate bounced off the 1.3845 level on Monday.On the other hand, if the GBP/USD drops, it could look for support in the 200-hour SMA at 1.3795, 55-hour SMA at 1.3784 and the weekly S1 simple pivot point at 1.3773. However, note that these levels failed to stop the rate from declining on Wednesday.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate declined below the support of the 55 and 200-day simple moving averages at 1.3815.Meanwhile, the 100-day SMA remains near the 1.3920 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 62% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to buy.
On Wednesday, traders were short, as 60% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 62% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to buy.