During Friday morning hours, the GBP/USD exchange rate reversed north from the 55-hour SMA near 1.3410. It is likely that some upside potential could prevail, as the rate is also supported by the 100- and 200-hour SMAs near 1.3380.
Note that the rate could face the resistance level – the weekly R3 at 1.3526.
Economic Calendar
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.
Next week, there are couple of macroeconomic data releases expected that could move the GBP/USD rate.
On Thursday, the US CPI data sets and the Unemployment Claims are set to be published at 13:30 GMT.
The week is set to end with the US Producers Price Index, which has caused moves from 6.9 to 48.9 pips. Although, note that without the 48.9 pip release, the range of moves is from 6.9 to 12.2 base points.
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
Yesterday, the GBP/USD exchange rate raised to the psychological level at 1.3500.It is likely that the currency pair could gain support from the 55-, 100– and 200-hour SMAs in the 1.3370/1.3410 range and trade upwards in the short term.
In the meantime, note that the pair could face the resistance level—the weekly R3 at 1.3526. If the given level holds, a reversal south could follow. Otherwise, the rate could target 1.3560/1.3580.
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 Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 69% of open position volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 62% to sell the GBP/USD pair.
On Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 69% of open position volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 62% to sell the GBP/USD pair.