However, after reaching the high level, the pair appeared to be retracing back down and looking for support, before continuing the surge. Economic Calendar
This week's notable events are over. Next week, the markets are set to concentrate on US Manufacturing PMI on Wednesday and employment data on Friday.
GBP/USD short-term review
A resumption of the Pound's recovery against the US Dollar might encounter resistance in the combination of the 1.2700 mark and the weekly R2 simple pivot point at 1.2715, before the pair approaches the 1.2750, 1.2800 and 1.2850 levels. The round levels acted as support and resistance during late April.On the other hand, a decline below the 1.2600/1.2640 zone and the weekly R1 simple pivot point at 1.2597 could look for support in the 50 and 100-hour simple moving averages near 1.2580 and 1.2560. Further below, the 1.2555/1.2560 range might once again act as support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed above the resistance line of the larger scale channel down pattern, which has guided the rate's decline since early February. Moreover, on Tuesday and Wednesday the pair confirmed the previous resistance as support.Next target for the surge was the 50-day simple moving average near 1.2750. Higher above, note the March and April support zone near 1.3000. Namely, the 1.3000 mark could act as resistance.
Daily chart
Read More: Technical Analysis
Traders go short
On Friday, traders were 52% bearish, as 52% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to buy the GBP/USD.
On Thursday, the open positions were 51% long and pending orders were 58% to sell.
On Friday, traders were 52% bearish, as 52% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to buy the GBP/USD.
On Thursday, the open positions were 51% long and pending orders were 58% to sell.