By the middle of Thursday's GMT trading hours, the GBP/USD had recovered the almost 150 pip losses that were suffered on Wednesday due to the UK-EU trade deal issues.
Moreover, the rate had surged higher than the previous high level of 1.3440, as it had reached the 1.3450 mark.
Economic Calendar
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The GBP/USD has moved from 18.5 to 32.4 pips on the announcement.
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 some upside potential could prevail in the market due to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly R1 in the 1.3360/3391 range. The rate could face the resistance level—the weekly R2 at 1.3462.If the predetermined resistance level holds, the currency pair could reverse south and target the weekly PP located at 1.3328.
Hourly Chart
On the daily candle chart, note that the rate is overbought, as the 55 and 100-day simple moving averages were located near the 1.3065 level.
In the meantime, in the case of the rate continuing its large scale surge, the rate should face the resistance of the 1.3480 level, which stopped and reversed the rate's summer surge.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Thursday, 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 66% of open position volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 86% to sell the GBP/USD pair.
On Thursday, 69% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 66% of open position volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 86% to sell the GBP/USD pair.