The resistance of the 1.3380/1.3400 level caused another drop. This time, the rate passed the support of the 55 and 100-hour SMAs, a pivot point and broke out of the ascending triangle pattern.
In the near term future, the rate was expected to test the support of the 1.3320 level and the 200-hour simple moving average.
Economic Calendar
Next week, on Tuesday, the GBP/USD currency exchange rate could be impacted by the 15:00 GMT publication of the US ISM Manufacturing PMI. The pair has moved from 11.1 to 29.5 pips on the release since July.
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The GBP/USD has moved from 18.5 to 32.4 pips on the announcement.
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
The resistance zone of 1.3380/1.3400 continued to hold on Thursday and Friday. The resistance caused a breaking of the supporting trend line and the 100-hour simple moving averages, which pushed the rate up.By the middle of Friday's GMT trading hours, the currency exchange rate had retreated below the support of technical levels that were located from 1.3344 to 1.3363.
In the near term future, the rate was expected to test the support of the 1.3320 level and the 200-hour simple moving average, which was approaching the rate from below.
In the case of these support levels holding, the rate would retrace up and test the 1.3344/1.3363 resistance levels. On the other hand, the pair could decline below the support levels and reach for the pivot point at 1.3255.
Hourly Chart
On the daily candle chart, the rate has broken the narrow channel up pattern, which guided it throughout November.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Thursday, 68% of trader open position volume on the Swiss Foreign Exchange has been in short positions.
Meanwhile, on Thursday, in the 100-pip range around the rate the pending orders were 59% to sell the GBP/USD pair.
On Friday, the orders were 52% to buy the pair.
Since Thursday, 68% of trader open position volume on the Swiss Foreign Exchange has been in short positions.
Meanwhile, on Thursday, in the 100-pip range around the rate the pending orders were 59% to sell the GBP/USD pair.
On Friday, the orders were 52% to buy the pair.