The GBP/USD bounced off the resistance of the high level zone near 1.3280 on Thursday. Afterwards, at 19:00 GMT on the same day, the pair reacted to the US Fed Statement by piercing the recent low level connecting trend line and shortly trading below 1.3180.
However, as it was clear that despite a decrease monetary USD stimulus would remain intact, the pair started a surge. By the middle of Thursday's trading, the GBP/USD had pierced the recent high level zone and reached the 1.3300 mark.
Economic Calendar
The week's notable events will end with the weekly US Unemployment Claims at 13:30 GMT and the US PMIs at 14:45 GMT. These events have rarely caused notable USD moves.
Click on the link below to find out more about data releases of this and other currency exchange rates.
GBP/USD short-term review
If the Pound continues to gain against the US Dollar, the rate might reach the resistance of the weekly R1 simple pivot point at 1.3324. Higher above, the weekly R2 simple pivot point could stop a surge at 1.3371.On the other hand, a bounce off from the resistance of the 1.1300 mark might look for support in the previous high level zone at 1.3277/1.3289. Below the zone, a cluster of technical levels is capable of reversing the rate's direction. Namely, the combination of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 1.3235/1.3245.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate remains in the borders of the large scale channel down pattern. Note the lower trend line of the pattern near 1.3150. Most recently, the currency pair bounced off the trend line.Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Thursday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP against USD.
On Wednesday, the positions were 69% long and the pending orders were 57% to sell.
On Thursday, traders were bullish, as 65% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP against USD.
On Wednesday, the positions were 69% long and the pending orders were 57% to sell.