After failing to pass the resistance of the 1.2400 level on Thursday, the GBP/USD declined. By Friday morning, the rate had almost reached the 1.2300 mark.
In the meantime, the pair had passed all of the technical levels that were located between 1.2300 and 1.2400.
Economic Calendar
On Friday, a notable reaction of above then pips could be created by the US Durable Goods orders.During the next week the US Advance GDP on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers of a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.
Afterwards, at 18:00 GMT, the Federal Reserve is bound to make a rate statement, which is bound to react to the ongoing economic decline. Take into account that the Federal Reserve Rate announcement and FOMC Statement are set to be followed by a Press Conference at 18:30 GMT.
On Friday, the US ISM Manufacturing PMI is scheduled to be published at 14:00 GMT.
GBP/USD short-term review
In the near term future, the 1.2300 level and the weekly S2 pivot point at 1.2281 would provide support to the rate.If the support levels hold, the rate should trade sideways until it is approached by the hourly simple moving averages. Namely, the 55 and 100-hour SMAs could push it down.
On the other hand, the support levels could fail earlier. In this case the rate would look for support in the 1.2250 mark, which caused the recent surge.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the 55 and 200-day simple moving averages.
In regards to the future, the rate could decline to the 1.2200 level, which provided the rate with support at the start of April.
Daily chart
Read More: Technical Analysis
Traders go long
Since the middle of Wednesday's GMT trading hours, the sentiment on the Swiss Foreign Exchange was neutral.
On Friday, traders went long, as the sentiment was 54% long.
On Friday, traders went long, as the sentiment was 54% long.