The surge of the GBP/USD managed to reach the 1.3480 level before a retracement back down started. By the middle of Wednesday's GMT trading hours, the rate's decline had been slowed down by the 55 and 100-hour simple moving averages.
The near term forecasts were based upon what would happen at the support of the 100-hour SMA, which appeared to keep the rate up.
Economic Calendar
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move. Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips, which is below normal volatility. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
If the rate manages to pass the support of the 100-hour simple moving average at 1.3325, it should decline to the support of the weekly and monthly simple pivot points near 1.3250.On the other hand, the SMA might holds and cause a test of the resistance of the 55-hour SMA. In the case of the 55-hour SMA failing to keep the rate down, the pair would retest the previous high of 1.3480 level.
Hourly Chart
On the daily candle chart, the pair's surge is occurring in the borders of a large scale channel up pattern.
In the meantime, zoom out and move back in the chart to observe how the 1.3383 high level previously had caused declines in 2019 December and March.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
Since Monday, 72% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment became 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to buy the GBP/USD pair.
Previously, the orders were 57% to sell.
On Wednesday, the sentiment became 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 57% to buy the GBP/USD pair.
Previously, the orders were 57% to sell.