During Friday morning hours, the GBP/USD exchange rate declined to the support provided by the 100-hour SMA near 1.3470. The rate could reverse north and re-test the resistance level formed by the weekly R2 at 1.3626.
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.
The week of Christmas is set to have an early market closing on Thursday in many countries and reduced liquidity due to people being on holidays. However, there are still four noteworthy data sets being released in the days before people are off from work.
All of the data releases of the week are scheduled to occur on 13:30 GMT.
Namely, on Tuesday, the US Final GDP could cause volatility. On Wednesday, Canadian statisticians will publish their monthly GDP data.
Last but not least, on Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released.
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 reversed south from the resistance level—the weekly R2 at 1.3626.From the one hand, it is likely that the currency pair could gain support from the 100– and 200-hour SMAs in the 1.3500 area. Thus, the pair could try to exceed the given resistance in the short run.
From the other hand, it is likely that the exchange rate could be pushed down by the 55-hour SMA near 1.3540. In this case the rate could decline to the weekly PP located at 1.3283.
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 Friday, 73% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 71% of open volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.