By the middle of Friday's European trading hours the GBP/USD currency exchange rate reached the 1.3380 level.
In the meantime, it was spotted on the daily candle chart that the rate had broken a large scale channel up pattern.
Economic Calendar
On Monday, the day is scheduled to end with the US PMIs at 14:45 GMT. Previously, the event did not cause adjustments in the USD pairs. However, in the most recent past the situation has changed, as the GBP/USD has moved from 7.8 to 35.5 pips.
Another day to watch the Economic calendars will be Wednesday. At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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
After passing the 1.3350 level, the rate began to trade sideways, as it consolidated gains. In the near term future, the pair was expected to continue its surge. A surge would test the resistance of the 1.3400 level, which was strengthened by the weekly R2 simple pivot point at 1.3402.In the case of the resistance holding, the rate would trade sideways between the 1.3400 and 1.3350 levels until the additional support of the hourly simple moving averages catch up.
On the other hand, if the resistance fails, the pair would aim first at 1.3450 and afterwards the high level of 1.3480.
Hourly Chart
On the daily candle chart, the rate broke the upper trend line of the channel up pattern, which guided the rate since late September.
In the meantime, the daily simple moving averages were located just below the 1.3000 mark. They signal that the rate is overbought.
Daily chart
Read More: Technical Analysis
Traders change positions
Since Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the sentiment became 59% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP/USD pair.
Since Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Monday, the sentiment became 59% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 78% to sell the GBP/USD pair.