The recovery of the GBP/USD continues, as the rate was soon expected to reach the 1.3100 level. Moreover, the currency exchange rate had passed a strong resistance cluster from 1.3060 to 1.3080.
On Thursday, the rate had no technical resistance as high as the weekly R1 simple pivot point at 1.3166.
Economic Calendar
On Thursday, the US Unemployment Claims data might affect the market. The release is scheduled to 12:30 GMT.
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the currency pair could target the weekly R1 located at 1.3166.In the meantime, it is unlikely that the exchange rate could trade downwards in the short term due to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.3060/1.3085 range.
Hourly Chart
On the daily candle chart, the rate is consolidating in the 1.3100 area.
In the meantime, it is likely that the rate is in the overbought zone, as it is trading far above the 55-, 100- and 200-day moving averages.
Daily chart
Read More: Technical Analysis
Traders set up sell orders
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 68% short on Wednesday.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to sell the GBP/USD pair.
The orders were 53% bullish on Wednesday.
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 68% short on Wednesday.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to sell the GBP/USD pair.
The orders were 53% bullish on Wednesday.