The GBP/USD bounced off the support of the rising wedge pattern and surged to the 1.3745 level. The rate bounced off the resistance of this level and declined.
By the middle of Friday's GMT trading hours, he rate had almost declined back to the support line.
Economic Calendar
Next week, on Monday, the US ISM Manufacturing PMI at 15:00 GMT could cause a move. The GBP/USD has moved from 12.7 to 29.5 base points on the publication since September.
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 11.8 to 38.4 pips.
At 12:00 GMT on Thursday, the Bank of England is set to announce its official bank rate. The GBP/USD has moved from 23.6 to 73.1 pips on the announcement.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 9.6 to 14.9 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The GBP/USD has moved 18.5 to 24.2 pips since September.
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 GBP/USD exchange rate continues to trade within a rising wedge pattern,From a theoretical perspective, it is likely that the currency pair could bounce off the lower pattern line in the nearest future. In this case the pair could target the psychological level at 1.3740.
Meanwhile, note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages in the 1.3680/1.3700 range. Thus, a breakout south could occur, and the rate could decline to 1.3600/1.3620.
Hourly Chart
On the daily candle chart, the pair appears to be consolidating by trading sideways around the 1.3700 level. The sideways trading could continue until a fundamental event causes a drop or surge.
In the meantime, note that the 55-day simple moving average was approaching the rate from below. On Friday, it was located at the 1.3479 level. This SMA has been capable of pushing the rate up. It could approach the sideways trading rate and push it up.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
On Thursday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 68% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.
On Thursday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 68% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 63% to buy the GBP/USD pair.