The almost week long sideways trading of the GBP/USD has ended. Namely, the pair broke the 1.2100 resistance and surged to the 1.2150 level.
On Friday morning, the rate had already retraced back down and found support at 1.2080. The support levels managed to cause a surge by the middle of the day's London trading session.
In regards to the short term future, another attempt to pass the 1.2150 level was expected.
No more data this week
There are no more notable data releases scheduled to occur this week.
Meanwhile, note that the FOMC Meeting Minutes will be published next week on Wednesday at 18:00 GMT. The publication of the text has since January caused moves from 9.2 to 22.5 base points on the GBP/USD charts.
GBP/USD short-term review
On Thursday morning, the GBP/USD broke the resistance of the 55 and 100-hour simple moving averages and began a surge to the pivot point that was located at the 1.2090 level.The pivot point was expected to be broken, as it had failed to stop the pair's surges three times during the week. Afterwards the rate would once more test the resistance of the 1.2100 level.
If the 1.2100 would fail to hold, the 200-hour SMA at 1.2110 would be reached next.
On the other hand, the rate might bounce off the 1.2100 level and resume its sideways trading that has been occurring this week.
Hourly Chart
On the daily candle chart the rate remains in the borders of a channel down pattern.
Note that recently the pair tested the lower trend line of the pattern, which held and was one of the causes of the surge on Monday.
In general, due to the angle of the pattern the rate could trade in any direction and it would still be in consistency with the channel.
Daily chart
Read More: Technical Analysis
Traders remain long
Since Thursday, 73% of total open GBP/USD position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were slightly bearish, as 55% of orders were set to sell and 45% were to buy.
The open position volume proportion and pending orders have remained mostly unchanged during the week.
Meanwhile, trader set up pending orders in the 100-pip range were slightly bearish, as 55% of orders were set to sell and 45% were to buy.
The open position volume proportion and pending orders have remained mostly unchanged during the week.