On Thursday, the GBP/USD exchange rate tested the support formed by the weekly and monthly PPs at 1.3250.
Given that the rate is pressured by the 55- and 100-hour SMAs, it is likely that the rate could consolidate.
Economic Calendar
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Next week, there are only couple events expected that could affect the GBP/USD rate.
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate tested the support level formed by the weekly and monthly PPs at 1.3250. During Friday morning, the rate reversed north.From the one hand, it is likely that some upside potential could prevail in the market, and the currency pair could target the psychological level at 1.3400.
In the meantime, note that the pair would have to surpass the 100-hour SMA near 1.3350. If the given resistance holds, it is likely that the rate could consolidate in the short term.
Hourly Chart
On the daily candle chart, the pair's surge is occurring in the borders of a large scale channel up pattern.
In the meantime, zoom out and move back in the chart to observe how the 1.3383 high level previously had caused declines in 2019 December and March.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment became 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 70% to sell the GBP/USD pair.
On Thursday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment became 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 70% to sell the GBP/USD pair.