During the early hours of Friday's trading, the GBP/USD passed the support zone above the 1.3720 level. This support kept the rate up since the middle of Wednesday's trading. The failing of the support resulted in a sharp move down.
In the near term future, the rate was expected to test the support of the March low levels in the 1.3670/1.3675 zone.
Economic Calendar
Notable events for this week are over.
Next week, on Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The GBP/USD has moved from 14.8 to 35.6 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 12.0 to 26.3 pips on the release.
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
In the case of the 1.3670/1.3675 zone holding, the GBP/USD would most likely consolidate by trading sideways or retracing back up to the 1.3700 level. The rate could trade sideways until it is caught up by the resistance of the 55-hour SMA.On the other hand, a passing of the March low levels could look for support in the 1.3650 level and the weekly S2 simple pivot point at 1.3651.
Hourly Chart
On the daily candle chart, the passing of the 55-day simple moving average did not result in a surge. Moreover, the rate's recent decline has once again pierced the lower trend line of the channel up pattern, which guided the rate since March 2020.
In general, it appears that the technical levels of the daily candle chart could not be relied on during this week.
However, note that the rate was reached by the 100-day simple moving average on Friday.
Daily chart
Read More: Technical Analysis
Short sentiment declines
On Friday, traders were neutral, as 50% of trader open position volume on the Swiss Foreign Exchange was in short and long positions.
Traders have been slowly taking profits, as the rate continued to decline.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell.
On Friday, traders were neutral, as 50% of trader open position volume on the Swiss Foreign Exchange was in short and long positions.
Traders have been slowly taking profits, as the rate continued to decline.
Meanwhile, in the 100-pip range around the rate the pending orders were 77% to sell.