On Friday, the GBP/USD currency exchange rate began to trade sideways between the support of the 200-hour simple moving average at 1.3855 and the resistance of the 55-hour SMA at 1.3893.
Economic Calendar
Next week, on Wednesday, all of the markets will move due to the release of the US Federal Reserve Federal Funds Rate at 18:00 GMT. The GBP/USD has moved 20.5 to 60.6 pips on the announcement since September 16.
On Thursday, at 12:30 GMT, the US Advance GDP will be released. This event has caused GBP/USD move sonly from 9.6 to 17.2 pips.
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 rate breaking out of the squeeze to the downside, the rate would most likely look for support first in the 1.3800 level and afterwards the weekly simple pivot point at 1.3786. Below these levels, only the 1.3750 level could provide support.On the other hand, a potential surge would immediately find resistance in the weekly R1 simple pivot point and the 1.3900 level. Above them, the 100-hour SMA could provide resistance near 1.3925.
Hourly Chart
GBP/USD daily chart's review
On Friday, the rate traded in limbo around the 55-day simple moving average. It was expected that a decline could continue after a period of consolidation.Note that the 1.4000 has been keeping the GBP/USD down since the start of March.
Daily chart
Read More: Technical Analysis
Buy orders increase
On Friday, traders were short, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to buy.
On Friday, traders were short, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to buy.