The surge of the GBP/USD continued until it reached the resistance of the weekly R1 simple pivot point at 1.3310. At mid-day on Thursday, the currency exchange rate had reached the support of the weekly PP at 1.3208.
After reaching the weekly PP, the rate traded between the pivot point and the 55-hour simple moving average.
Economic Calendar
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
The week will end with retail sales data from the UK at 07:00 GMT
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
It is likely that the currency pair could be pushed down by the 55– and 100-hour moving averages in the 1.3230/1.3255 area. Note that the nearest support level, formed by the weekly S1, is located at 1.3102.Meanwhile, note that the exchange rate could gain support from the weekly PP and the 200-hour SMA near 1.3210. Thus, some upside potential could prevail in the market in the short run.
Hourly Chart
On the daily candle chart, on Monday, Dukascopy Analytics spotted a channel up pattern. The channel captures the rate's recovery that has been occurring since the start of September. The pattern's upper trend line strengthened the resistance of the weekly R1 simple pivot point.
Daily chart
Read More: Technical Analysis
Short sentiment grows
On Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy the GBP/USD pair.
On Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to buy the GBP/USD pair.