The surge of the GBP/USD has continued, as at midnight to Wednesday, the rate almost touched the 1.4250 mark. However, by the middle of the day's GMT trading hours, the rate had retreated to the 1.4150 level.
In the near term future, the rate was expected to either decline or trade sideways until it would be approached by the 55-hour simple moving average. Previous surges occurred, as the SMA caught up with the rate.
Economic Calendar
This week, the US Preliminary GDP will be published on Thursday at 13:30 GMT. The rate has moved from 11.5 to 16.8 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that the currency pair could gain support from the 55– and 100-hour moving averages. Thus, bulls could prevail in the market in the short run. Note that the pair could eventually face the resistance level –the weekly R3 at 1.4299.In the meantime, the exchange rate could bounce off the 1.4200 level. Due to that reason, some downside potential could prevail in the market, and the rate could target the support formed by the 200-hour SMA and the weekly PP near 1.3960.
Hourly Chart
On the daily candle chart, the supporting trend line of the previous pattern has been left unmoved. Meanwhile, the resistance line has been adjusted to the April and September high levels. It has revealed a large scale channel up pattern, in the borders of which the rate has been since March.
Meanwhile, note that the rate could eventually test the resistance of the 2018 high level at 1.4377.
Daily chart
Read More: Technical Analysis
Short sentiment increases
Since Monday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders appear to be waiting for a retracement back down.
On Wednesday, the sentiment changed, as 75% of open position volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
The orders were 51% to buy on Tuesday.
Since Monday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions. Traders appear to be waiting for a retracement back down.
On Wednesday, the sentiment changed, as 75% of open position volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
The orders were 51% to buy on Tuesday.