The GBP/USD found support on Wednesday and Thursday above the 1.3400 level. The support zone has been marked on the hourly candle chart.
After finding support, the pair surged to the resistance of the 55-hour simple moving average and the 1.3500 level. These levels provided resistance and the 55-hour SMA began to push the rate down. By the middle of Friday's trading hours, the currency exchange rate had been pushed below the 1.3450 level.
Economic Calendar
On Thursday, at 12:30 GMT the US GDP, the US weekly Unemployment Claims could also impact the USD. The GDP has caused moves from 10.9 to 17.9 pips. The Claims have moved the GBP/USD from 6.6 to 12.2 points.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results. The GBP/USD moves from 11.5 to 21.1 points on the release.
On Tuesday, the US ISM Services PMI at 14:00 GMT could impact the value of the US Dollar and all USD currency exchange rates. The event has moved the GBP/USD from 9.3 to 26.9 base points since May 2021.
On Wednesday, the ADP Non-Farm Employment Change at 12:15 GMT might cause USD volatility. The pair has moved from 12.5 up to 18.3 pips on the release since May 2021.
On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD. The GBP/USD has moved from 6.6 to 18.3 pips on the releases that occurred in September.
On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.
The pair has reacted to the US employment data since May 2021 with moves from 35.2 to 76.4 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
If the simple moving average continues to provide resistance and push the rate down, the GBP/USD could once again look for support in the 1.3410/1.3417 zone. Below this zone, the 1.3350 and 1.3300 levels could provide additional support.On the other hand, the SMA could fail to provide resistance. In this case the combination of the weekly S2 simple pivot point at 1.3537 and the 100-hour SMA near 1.3540 might serve as resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has passed the support of the summer low levels. Note that the zone was passed in a one, clear, large move. Note that the rate has not been this low since December 2020.Future support on the larger scale could be provided by round exchange rate levels.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Friday, traders were long, as 64% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 62% long.
Meanwhile, on Friday, in the 100-pip range around the rate the pending orders were 55% to sell.
The orders were 74% to buy on Thursday.
On Friday, traders were long, as 64% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 62% long.
Meanwhile, on Friday, in the 100-pip range around the rate the pending orders were 55% to sell.
The orders were 74% to buy on Thursday.