On Thursday, the 1.3200 level provided the GBP/USD with enough support for the rate to surge above the resistance of the hourly simple moving averages.
By the middle of Friday, the rate traded above the 1.3260 level, which was supported by the 55-hour SMA.
Economic Calendar
On Monday, at 09:30 GMT, the UK Markit PMIs are set to be published and should impact the GBP pairs. For example, the GBP/USD has moved from 13.0 to 25.0 pips on the announcement since June.
The same day is scheduled to end with the US PMIs at 14:45 GMT. Previously, the event did not cause adjustments in the USD pairs. However, in the most recent past the situation has changed, as the GBP/USD has moved from 7.8 to 35.5 pips.
Another day to watch the Economic calendars will be Wednesday. At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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
Given that the currency pair could gain support from the 55– and 100-hour SMAs in the 1.3250 area, it is likely that some upside potential could prevail in the market.Meanwhile, note that the pair could face the resistance level—the weekly R1 at 1.3310. If the given resistance level holds, the exchange rate could reverse south and re-test the predetermined support level.
Hourly Chart
On the daily candle chart, the rate bounced off the upper trend line of the channel up pattern on Wednesday.
In the meantime, the daily simple moving averages were located just below the 1.3000 mark. They signal that the rate is slightly overbought.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since Thursday, 61% 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 72% to sell the GBP/USD pair.
Since Thursday, 61% 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 72% to sell the GBP/USD pair.