The bounce off and decline from the 1.3700 level eventually found support in the 55-hour simple moving average. During the first half of Thursday's trading, the currency exchange rate was being pushed up by the SMA.
Meanwhile, it was spotted that the weekly R1 simple pivot point managed to provide the rate with resistance, as it reversed an attempt to reach the 1.3700 mark.
Economic Calendar
On Thursday, at 13:30 GMT, expect the weekly US Unemployment Claims. Despite the attention this release gets, we do not recommend monitoring it closely, as the last two releases caused moves below ten base points on the GBP/USD.
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
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
It is likely that the currency pair could gain support from the 55-hour moving average near 1.3680 and extend gains within the following trading session. The pair could target the weekly R2 at 1.3776.Meanwhile, note that the exchange rate would have to exceed the weekly R1 at 1.3676. If the predetermined resistance holds, the rate could decline to the psychological level at 1.3550 in the short term.
Hourly Chart
On the daily candle chart, it can be observed that previously the 1.3700 level strengthened the resistance of the large scale channel up pattern.
In regards to the future, due to the angle of the resistance of the pattern, the rate still has room for a surge. However, a decline to the 55- day SMA is likely, as the rate had done so each time after reaching the upper trend line.
Daily chart
Read More: Technical Analysis
Traders are short on GBP/USD
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 66% to sell the GBP/USD pair. Previously, the orders were 70% to sell.
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Wednesday, the sentiment was 69% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 66% to sell the GBP/USD pair. Previously, the orders were 70% to sell.