The Pound has initiated a fundamental surge because of Brexit associated news. The surge reaches one target after another in steady surges.
Meanwhile, the technical levels are only causing short term pauses, which quickly end.
The Federal Reserve released on Wednesday the US FOMC Meeting Minutes where fed officials provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
"Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Such an announcement would provide more certainty about the process for completing the normalization of the size of the Federal Reserve's balance sheet," the document said.
Only US GDP will influence the GBP/USD
As it is accustomed, the last week of the month is set to be quiet for fundamental macroeconomic data releases.
The macro week will start on Wednesday. At 13:30 GMT the Canadian CPI data will be published.
On Thursday the US Advance GDP will be released at 13:30 GMT. This event can cause moves of around 20 base points.
On Friday, the Canadian GDP data will be out at 13:30 GMT. It is most likely set to be the event which will cause the biggest move during this week.
For more information watch the weekly calendar analysis stream on our youtube channel.
GBP/USD short term review
As it was expected, the GBP/USD surged during the last 24-hours. However, the surge was a lot bigger than expected. The reason was another fundamental Brexit announcement.Namely, Theresa May moved a motion in UK's parliament to delay the Brexit in an effort to delay a no-deal scenario.
By the middle of Wednesday's trading from a technical perspective the pair had consolidated its previous gains and resumed a surge after finding support in the weekly R2 at the 1.3238 level. This surge could reach as high as 1.3325, where another trend line is located at.
Although, take into account that trend lines don't hold for long in the current environment.
Hourly Chart
On the daily chart the recent moves have been consistent with a dominant ascending pattern that was drawn by our analyst last Wednesday.
Judging by the fact that the dominant patterns of the hourly chart have been broken, most likely a full review of the trends will be conducted in the near future.
However, as the Brexit deadline approaches, the patterns are expected to be less and less relative.
Daily chart
Meanwhile, the trader set up pending orders were set to sell the GBP/USD even more. In the 100-pip range around the rate 67% of orders were set to sell.
The orders are most likely set up by those who want to open a short position when the rate begins to retrace downwards.