The rate has encountered resistance near 1.2940 and declined to the support of the 1.2845/1.2855 range. The range is keeping the rate from declining further. However, the 50 and 100-hour simple moving averages are approaching from above and could push the rate down. Meanwhile, it has been spotted that the decline has occurred in a channel down pattern.
In the meantime, traders had closed their short positions. 60% were short on Wednesday. By mid-Friday, as the rate declined, traders had become 51% short.
Economic Calendar
This week's notable events are over. Next week, there is nothing notable scheduled until Tuesday.
GBP/USD hourly chart analysis
A proper recovery of the Pound against the US Dollar is set to face the 50 and 100-hour simple moving averages and the upper trend line of the channel down pattern. Higher above, the 1.2900 is most likely going to act as resistance. In addition, the 200-hour SMA might descend and strengthen the 1.2900.On the other hand, a move below 1.2845 is set to look for support in the 1.2800/1.2820 range that has acted both as support and resistance in June and July.
Hourly Chart
GBP/USD daily candle chart analysis
Prior analysis: "On the daily candle chart, the pair has hit the upper trend line of the pattern that has guided the GBP/USD up since mid-April. Moreover, the pair apparently has booked a new 2024 high level.A bounce off from the trend line could result in the rate looking for support in 1.2900 and the prior 2024 high at 1.2899, before the rate declines to the 1.2800/1.2850 zone."
Since July 22, the rate was finding support in 1.2900, but there was resistance at 1.2950 that was keeping the pair from resuming the prior surge.
This week, the 1.2900 failed and the rate reached the 1.2800/1.2850 zone.
Read More: Technical Analysis
Traders take profits
On Monday, the Dukascopy open positions were short as 67% of all open position volume was in short positions.
Meanwhile, pending orders in the 100-pip range around the rate were 61% to sell the pair.
On Wednesday, traders had doubled down on their shorts, as 60% were short.
However, trader pending orders were 62% to buy instead of sell. It appears that traders could soon take profits, if a recovery starts.
By mid-Friday, traders had taken profits. Open volume was 51% short and orders were 56% to sell. Traders had gained more and closed positions, instead of closed due to a recovery.
Meanwhile, pending orders in the 100-pip range around the rate were 61% to sell the pair.
On Wednesday, traders had doubled down on their shorts, as 60% were short.
However, trader pending orders were 62% to buy instead of sell. It appears that traders could soon take profits, if a recovery starts.
By mid-Friday, traders had taken profits. Open volume was 51% short and orders were 56% to sell. Traders had gained more and closed positions, instead of closed due to a recovery.