On Thursday, technical levels were broken, as the rules were dictated by the Bank of England making a policy statement. In general, no changes in the next six months in the policy, as the bank is not ready to go into zero rates.
The event caused a surge of almost 130 base points or 0.95%.
Economic Calendar
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 adjustment to the fundamental news broke the resistance of the 55, 100 and 200-hour simple moving averages and the channel down pattern that guided the rate this week. The surge eventually stopped at the 1.3700 psychological level.Afterwards, the rate began a decline, during which it ignored the support of the simple moving averages. If the situation continues, the GBP/USD currency exchange rate would look for support in the weekly S1 simple pivot point, which provided the rate with support on Wednesday. In the case of the SMA failing, expect the support zone of 1.3610/1.3620 to provide support.
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. 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
Traders are mostly short
On Wednesday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP/USD pair.
On Wednesday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 67% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP/USD pair.