During Wednesday's trading, the GBP/USD fluctuated between the 1.3550 and 1.3660 levels. By doing so, the currency exchange rate revealed a descending triangle pattern. In theory, the rate could remain in this pattern until January 12.
In the meantime, the rate is being impacted by the hourly simple moving averages that are located in the borders of the triangle.
Economic Calendar
On Wednesday, the FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 7.2 to 10.1 pips. Note that there was an anomaly of 20.0 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The releases have caused moves, respectively, from 9.3 to 16.0 and 13.3 to 21.1 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 18.5 to 32.4 pips since August.
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
The GBP/USD exchange rate has revealed a descending triangle pattern.From a theoretical perspective, it is likely that the British Pound could trade sideways against the US Dollar within the predetermined pattern within the following trading session.
From the other hand, the currency pair could be pushed down by the 55– and 100-hour SMAs in the 1.3600/1.3620 area. In this case the pair could face the support level—the weekly S1 at 1.3508.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the channel up pattern, which has guided the rate since September.
In regards to the future, due to the angle of the resistance line, the rate still has room for a surge. However, a decline to the 55- day SMA is likely, as the rate had done so each time after reaching the trend line.
Daily chart
Read More: Technical Analysis
Buy orders are back
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to buy the GBP/USD pair. Previously, the orders were 77% to sell.
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to buy the GBP/USD pair. Previously, the orders were 77% to sell.