The surge of the GBP/USD managed to pass the resistance of the 1.3100 level. However, the surge was stopped by the 1.3150 level, which had close by the resistance of the weekly R2 simple pivot point at 1.3170.
In the meantime, it was spotted that on Friday morning, the 1.3100 mark had started to provide support, as a retracement down to it was reversed during the morning hours.
Economic Calendar
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 18.5 to 43.0 pips on the announcement since June.
Next week, on Thursday, at 07:00 GMT pay attention to the UK Preliminary GDP, which could cause a minor increase of volatility on the GBP pairs. The GBP/USD rate has moved from 12.8 to 39.2 pips on the announcement.
On the same day, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 29 pips on the announcement.
On Friday, the US Producer Price Index are scheduled to be released at 13:30 GMT. The GBP/USD has moved from 11.1 to 36.2 pips during the release of the PPI.
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
Since Thursday, the GBP/USD exchange rate has been testing the resistance level—the 1.3150 mark and the weekly R2 at 1.3170.If the predetermined resistance level holds, it is likely that a reversal south could occur. In this case the currency pair could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP and R1 in the 1.2972/1.3062 range.
Otherwise, some upside potential could prevail in the market, and the exchange rate could face the resistance level—the weekly R3 at 1.3260 within the following trading session.
Hourly Chart
On the daily candle chart, the rate was approaching the October high level of 1.3180. This level provided resistance and caused the end of October decline to the 100-day simple moving average.
Daily chart
Read More: Technical Analysis
Traders remain neutral
On Friday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
On Thursday, 75% of orders were to sell.
On Friday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 60% to sell the GBP/USD pair.
On Thursday, 75% of orders were to sell.