The worse than forecast US Advance GDP data on Thursday caused a surge of the GBP/USD currency exchange rate. Due to the surge, the rate reached 1.3815, as it surged 85 pips.
In the aftermath of the jump of the pair, the GBP/USD has been declining. At mid-day on Friday, the rate was finding support in technical levels in the 1.3763/1.3770 zone.
Economic Calendar
On Monday, the US ISM Manufacturing PMI will be published at 14:00 GMT. The rate has moved from 11.5 to 21.6 pips on the release since June 2021.
On Wednesday, at 12:15 GMT the US ADP Non-Farm Employment Change could cause a minor USD move. The GBP/USD has reacted to the event with moves from 12.5 to 18.30 pips.
Later on, at 14:00 GMT the US ISM Non-Manufacturing PMI will be out. During the event, the pair has moved from 11.2 to 26.9 pips.
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT. The GBP/USD has moved from 24.2 to 70.8 base points during the time of the publication.
The top event for the GBP will occur on Thursday. At 12:00 GMT, the Bank of England Official Bank Rate will be published together with the Monetary Policy Statement. The rate has moved 26.9 to 71.8 pips on the release.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move. The rate has moved 11.7 to 18.3 pips, as the Claims are released.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT. The event has moved GBP/USD from 35.2 to 52.8 pips since June 2021.
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
If the support of the 55 and 100-hour simple moving averages manage to push the rate up, it could eventually reach the resistance of the weekly R1 simple pivot point at 1.3831. In addition, the October high level at 1.3835 could serve as a resistance level.On the other hand, a decline below the SMAs might look for support in the ascending trend line, which connects the recent low levels. Below the trend line, the October 27 low level at 1.3710 could provide support.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has pierced the resistance of the 100-day simple moving average. However, the 200-day SMA still provides resistance and strengthens the 1.3850 mark.Meanwhile, the 55-day SMA appears to have started to provide support at the 1.3720 level.
Daily chart
Read More: Technical Analysis
Traders short GBP/USD
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 62% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell.
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 62% of volume was short.
Meanwhile, in the 100-pip range around the rate the pending orders were 74% to sell.