During Thursday morning, the GBP/USD exchange rate was testing the upper boundary of the medium-term descending channel.
From a theoretical perspective, it is likely that a reversal south could occur.Economic Calendar
This week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate raised to the 1.3040 level. During Thursday morning, the rate was testing the upper boundary of the medium-term descending channel.From a theoretical perspective, it is likely that a reversal south could occur in the nearest future. Note that the currency pair could gain support of the 55– and 100-hour SMAs at 1.3022. A possible downside target is the weekly S1 at 1.2985.
However, if the given channel does not hold, it is likely that a breakout north could occur in the nearest future. In this case the exchange rate could face the resistance level—the weekly PP at 1.3099.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders short the pair
Since Wednesday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bearish. In the 100-pip range, 62% of orders were to sell and 38% were buy orders.
Meanwhile, trader orders were bearish. In the 100-pip range, 62% of orders were to sell and 38% were buy orders.