By the middle of Wednesday's European trading hours, the GBP/USD currency exchange rate was testing the resistance of the zone above the 1.3920 level, which already stopped the rate's May 3 sharp surge.
Economic Calendar
On Friday, the rate could move due to the US employment data at 12:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and the Non-Farm Employment Change could cause a move from 22.0 to 55.0 pips.
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GBP/USD short-term review
If the rate passes the resistance zone from 1.3920/1.3932, the rate could reach for the April high level at 1.3975. In the case of the 1.3975 mark being passed, the rate could once again reach the 1.4000 level.On the other hand, a potential decline could look for support in the 55, 100 and 200-hour simple moving averages below the 1.3900 level. In addition, a supporting trend line has been pushing the rate up throughout May.
Hourly Chart
GBP/USD daily chart's review
The support of the 1.3800 mark was enough for the rate to return to trading above the 55-day simple moving average. It was spotted on Wednesday that the SMA had resumed to provide support to the currency exchange rate.Daily chart
Read More: Technical Analysis
Traders are short
On Wednesday, traders were short, as 55% 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 79% to sell.
On Wednesday, traders were short, as 55% 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 79% to sell.