On Friday morning, the GBP/USD passed the resistance of the 1.3700 mark and the weekly simple pivot point at 1.3694.
The rate had shown that it could sure. However, it would face the resistance of previous high levels before reaching the technical resistance of the weekly R1 simple pivot point at 1.3779.
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.
Next week, there might be moves caused by the US Consumer Price Index data on Wednesday, the US Unemployment Claims on Thursday and the UK Preliminary GDP on Friday.
The US Consumer Price Index and the Core Consumer Price Index will be published on Wednesday at 13:30 GMT. Since September, this publication has caused moves from 8.6 to 29.0 pips.
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published. The GBP/USD has recently moved from 8.7 to 14.9 pips on the publications.
The UK Preliminary GDP will be published on Friday at 07:00 GMT. Our data shows that it has had a range of 9.5 to 23.6 pips. However, note that the reactions have been declining in size since the coronavirus has been impacting the economy.
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-, 100– and 200-hour SMAs in the 1.3650/1.3684 range. Thus, some upside potential could prevail in the market and the weekly R1 at 1.3779 might be reached.In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below the 1.3560/1.3580 range within the following trading session.
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 Friday, 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 69% to sell the GBP/USD pair.
On Friday, 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 69% to sell the GBP/USD pair.