By the middle of Wednesday's trading session the GBP/USD was testing the resistance of the 1.3200 level.
The rate could push through the resistance level as soon as the 55-hour simple moving average approaches from below.
The British Pound depreciated against the US Dollar, following the UK Current Account release on Friday at 9:30 GMT. The GBP/USD exchange rate lost 25 pips or 0.19% right after the release. The British Pound continued trading at the 1.3030 level against the US Dollar.
The Office for National Statistics released the UK Current Account data, which came lower-than-expected. The index was negative 23.7B compared with forecast negative 22.9B.
"An elevated shortfall is a potential source of vulnerability for the UK economy — particularly if there was any major loss of investor confidence in the UK for any reason, most obviously Brexit concerns," economist Howard Archer, from the EY ITEM Club Consultancy, said.
US and Canadian data on Friday
Until Friday there are no notable macroeconomic data releases scheduled to take place.On Friday, at 12:30 GMT the US and Canadian employment data sets will be published. The US data is expected to impact all USD pairs.
Meanwhile, the Canadian data should cause a much bigger impact on all CAD pairs. Most complicated price movements will happen on the USD/CAD.
GBP/USD short term review
Yesterday the GBP/USD currency pair re-tested the lower boundary of the medium-term ascending channel at 1.3014 and skyrocketed towards the Fibonacci 36.10% retracement at 1.3162.From a technical perspective, it is unlikely, that the pair would go downside due to the support cluster formed by a combination of the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.3083/1.3138 range. However, it is expected, that the weekly R1 at 1.3213 would preclude the rate from rising.
Thus, it is likely, that the British Pound trades at the given Fibo 36.10% against the US Dollar.
Hourly Chart
On the daily chart one can observe that the currency exchange rate has bounced off the combined support of a large scale ascending pattern's lower trend line and the 200-day simple moving average near 1.3000.
If a fundamental Brexit announcement does not drastically change the situation, the rate is expected to surge during the next couple of months.
Daily chart
Meanwhile, the pending orders in the 100-pip range from the current rate were neutral. 51% of the orders were set to buy.