Despite piercing the lower trend line of a channel up pattern on Wednesday, the rate managed to find support at 1.2850 and surge.
During Thursday's European morning trading hours, the currency exchange rate had passed the resistance of two SMAs and was surging above the 1.2950 level.
Economic Calendar
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
On Friday, at 06:00 GMT, GBP pairs could move on the publication of the UK GDP data. The event has caused moves from 8.5 to 20.6 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Due to the rate having no technical resistance as high as the pivot point at 1.3028, the GBP/USD is more likely to find resistance in the 1.3000 level. This level stopped the rate's previous attempts to surge in September.In the case of the 1.3000 mark holding, the rate could retrace back down to the support of the 55 and 100-hour simple moving averages near the 1.2930 level.
If the 1.3000 level's resistance is passed, the rate would look for resistance in the monthly simple pivot point at 1.3028.
Hourly Chart
On the daily candle chart, on Wednesday, the 55-day simple moving average was strengthening the resistance of the 1.3000 mark. Note that the 1.3000 level stopped the rate's surge in the middle of September.
However, on Thursday, the SMA had moved higher to the 1.3025 level. Due to that reason, the 1.3000 mark could be passed.
In the meantime, the 100-day SMA was approaching the rate and supported the 1.2800 level.
Daily chart
Read More: Technical Analysis
Traders increase short sentiment
On Wednesday, 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 58% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 68% to sell the GBP/USD pair.
Previously, the orders were 51% to sell.
On Wednesday, 54% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 58% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 68% to sell the GBP/USD pair.
Previously, the orders were 51% to sell.