The 55-hour SMA failed to continue to push the GBP/USD down. Late on Thursday, the resistance level was passed.
Moreover, on Friday, the currency exchange rate reached the resistance of the weekly S1 simple pivot point at 1.2797.
Economic Calendar
The week will start with a long forgotten data release. The UK quarterly GDP is scheduled to be published on Wednesday at 06:00 GMT. The event has caused GBP/USD moves from 8.3 to 23.7 pips since June 2019. Due to the quite rare caused movement, this release was previously ignored.
Afterwards, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move. For example, the GBP/USD has moved from 10.2 to 21.5 pips on the announcement.
On the same day, at 12:30 GMT the US are publishing GDP data. A GBP/USD move of 8.1 to 37.4 pips has occurred on the release. However, the 37.4 pip move was an anomaly caused by the coronavirus.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. GBP/USD has moved from 22.8 to 43.0 pips on the announcement.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
On Friday morning, the GBP/USD failed at an attempt to pass the resistance of the 1.2800 level and the weekly S2 simple pivot point at 1.2797. Afterwards, the rate began a decline, which was expected to look for support in the 55-hour SMA.In the case of the 55-hour SMA holding, the pair would make another attempt to pass the 1.2800 level.
On the other hand, if the 55-hour SMA fails to provide support, the rate could once again look for support in the cluster of levels that is located from 1.2700 to 1.2675.
Hourly Chart
On the daily candle chart, the rate is located above the 100 and 200-day simple moving averages that are located at 1.2690. However, note that these levels eventually failed to provide support during this week and they were passed.
Daily chart
Read More: Technical Analysis
Traders remain long
Since Tuesday, 57% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell the GBP/USD pair.
Previously, the orders were 55% to sell.
Since Tuesday, 57% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell the GBP/USD pair.
Previously, the orders were 55% to sell.