The GBP/USD exchange rate continues to follow the rising wedge pattern.
From a theoretical perspective, the rate could re-test the lower pattern line and continue to move within the given pattern.
Economic Calendar
The Friday will end with the US Manufacturing and Services PMIs at 14:45 GMT. The GBP/USD has moved from 7.8 to 35.5 pips on the release.
The next week is expected to be relatively calm in regards of the economic calendar.
Most of notable events are expected from the United States. Namely, on Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement at 19:00 GMT.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
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
Yesterday, the GBP/USD exchange rate bounced off the upper boundary of the rising wedge pattern.From a theoretical point of view, it is likely that the currency pair could re-test the lower pattern line located in the 1.3400/1.3600 area in the short run. If the given pattern holds, a reversal north could follow.
Meanwhile, note that the exchange rate could gain support from the 100– and 200-hour SMAs. Thus, a breakout north could occur, and the rate could target the 1.3760/1.3800 area.
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 go short
On Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 68% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.
On Friday, 71% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 68% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.