This week, watch out for the US Federal Reserve Federal Open Market Committee Meeting Minutes release on Wednesday at 18:00 GMT.
The meeting minutes might impact the value of the US Dollar by revealing additional details about the recent US rate hike.
GBP/USD short-term view
A continuation of the pair's surge could be stopped by the 1.2780/1.2800 range. Note that the range had been pierced on Thursday. However, the breaking of the resistance range did not result in a broader surge, as the 1.2820 level acted as resistance.In the case of a decline watch the moving averages, the 1.2667/1.2685 range, the weekly S1 at 1.2631 and the 1.2620 level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the 1.2800 mark and the 50-day simple moving average. The levels turned into resistance at the start of the month. A move above the resistance could aim at the 1.3000 mark.Most recently, the GBP/USD reached the support zone above 1.2600 and the 100-day simple moving average. A passing below these support levels could result in the rate looking for support in the 1.2300/1.2450 range and the 200-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders are bullish on GBP
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 55% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 63% to sell.
On Tuesday, open GBP/USD positions by Swiss Foreign Exchange traders were 55% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 63% to sell.