The surge of the GBP/USD that was caused by the US Consumer Price Index release has reached the 1.3750 level's resistance. The round exchange rate level forced the pair into a retracement back down just before mid-day on Thursday. The consolidating decline appeared to be finding support in Wednesday's high level at 1.3715.
Economic Calendar
The week will end with the US Retail Sales and Core Retail Sales on Friday at 13:30 GMT. The pair has moved from 10.4 to 29.6 pips.
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GBP/USD short-term review
If the GBP/USD currency exchange rate continues to surge, it would have to pass the 1.3750 level. A move above 1.3750 level would have no technical resistance as high as the weekly R3 simple pivot point at 1.3820. However, the 1.3800 mark might act as resistance.Meanwhile, if the Pound starts to decline again the US Dollar, the rate might look for support in the 1.3715 level, the weekly R2 simple pivot point at 1.3709 and the 1.3700 mark. Further below, the 50-hour simple moving average was located near 1.3670.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the surge of the rate has encountered the resistance of the 200-day simple moving average near 1.3740.Daily chart
Read More: Technical Analysis
Traders are short
Since Wednesday, traders were mostly bearish, as 75% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to sell the GBP against USD.
Since Wednesday, traders were mostly bearish, as 75% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to sell the GBP against USD.