GBP/USD spikes more than 80 pips off 1.30 level

GBP/USD has risen sharply in early Asia, moving from the critical 1.30 area all the way up towards a session high of 1.3084 in a move that so far has not been attributed to any specific headline. GBP/USD is up 0.48% on the day.

How strong has the move been?

The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bullish. At the time of writing, RSI is neutral at 77.57, up from 52.40 at the last hour close, while ADX is ranging at 26.79, up from 19.60 previous. Meanwhile, daily RSI is in neutral territory at 40.03. On the hourly GBP/USD chart, the 200 SMA is declining and currently at 1.3027, down from the previous hour close at 1.3171. On average, the exponential closing price for the past 20 days is 1.3226, with the trend indicating a continuation lower ahead.

How volatile has GBP/USD been?

2-Standard Deviation Volatility Bandwidth is presently at 55 pips and shrinking on the hourly GBP/USD chart, while the ATR (14) is currently at 19 pips.2-Standard Deviation Volatility Bandwidth is at 342 pips and shrinking on a daily chart. Over the last four weeks, the average movement for the present session has been 19 pips per hour. Further, today’s peak period for volatility is between 8:00-9:00 GMT, which sees an average movement of 58 pips over the previous four week period.

What price levels and patterns have to be considered?

Current price is 1.3065, with resistance ahead at 1.3066 (Daily High), 1.3083 (Daily Classic R1), 1.3108 (Hourly 100 SMA), 1.3126 (Daily Classic R2) and 1.3153 (Daily Classic R3). Next support to the downside can be found at 1.3056 (Daily Classic PP), 1.3051 (Yesterday's High), 1.3013 (Daily Classic S1), 1.3003 (Hourly 20 EMA) and 1.3003 (Daily Open). Looking at price patterns, we can see a Piercing Line 4-hour candlestick formation,