The GBP/USD has traded sideways during the last twenty four hours. It has fluctuated above the 55 and 200-hour simple moving averages near 1.3140,
Meanwhile, the 1.3200 level has been providing resistance to the currency exchange rate.
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
During Wednesday's trading session, the British Pound was supported by the 200-hour SMA to break the resistance level of the 36.10% Fibo at 1.3162. Today, the currency exchange rate was located below the 36.10% Fibo at the 1.3159 mark.Most likely, the 200-hour and the 55-hour simple moving averages will support the rate to break the 36.10% Fibonacci retracement level at the 1.3162 mark.
In addition, most likely, the British Pound will end the trading day at the 1.3150 level.
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 set to sell. Namely, 57% of the orders were set to sell.
Previously, the orders were neutral. The changes indicate that short term traders are ready to open additional short positions.