During Thursday's trading, the GBP/USD reached the high level of 1.3625, where it encountered the resistance of a weekly R2 simple pivot point. As the rate reached the pivot point, the Bank of England made a rate statement and a monetary policy summary.
The British Pound depreciated against the US Dollar, following the BOE Monetary Policy Summary release on Thursday at 12:00 GMT. The GBP/USD exchange currency rate lost 28 pips or 0.21% after the release. The Pound continued trading at the 1.3590 level against the Greenback after the release.
According to the official release: "The Bank of England's Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 16 December 2020, the Committee judged that the existing stance of monetary policy remains appropriate."
Economic Calendar
The week for GBP/USD traders will end at 13:30 GMT on Friday with the release of the UK Retail Sales at 07:00 GMT. Expect a move from 6.4 to 16.0 pips.
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
It is likely that the currency pair could once again face the resistance level—the weekly R2 at 1.3626. Thus, a reversal south could occur and the pair could decline to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly R1 in the 1.3370/1.3461 range.However, if the predetermined resistance level does not hold, some upside potential could continue to prevail in the market. In this case the exchange rate could target the weekly R3 at 1.3774.
Hourly Chart
On the daily candle chart, the rate is testing the upper trend line of the recently discovered channel up pattern, which has been guiding the rate since October.
Daily chart
On Thursday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, 69% of open volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell the GBP/USD pair.