The surge of the GBP/USD reached the 1.3120 level before starting a decline back to the hourly simple moving averages.
On Friday, the currency exchange rate was bouncing around between the support of the 55-hour SMA and the 200-hour SMA.
Economic Calendar
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Despite the next week having high impact events on the calendar, Dukascopy Analytics do not expect notable macroeconomic data caused moves.
First of all, note that the FOMC Meeting Minutes on Wednesday will not have a rate announcement and a statement. The Meeting Minutes on their own were excluded from the historical data analysis after for a half-year period it caused only four pip moves on the EUR/USD. Equivalent minor moves occurred on other pairs.
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate re-tested the psychological level at 1.3120. During Friday morning, the rate was testing the 200-hour SMA near 1.3080.If the given moving average holds, it is likely that the currency pair could reverse south and re-test the lower boundary of the medium-term ascending channel circa 1.3030.
On the other hand, the pair could gain support from the 55– and 100-hour SMAs near 1.3060. Thus, it is likely that some upside potential could prevail in the market.
Hourly Chart
On the daily candle chart, the rate is consolidating in the 1.3100 area. In addition, a channel up pattern was spotted and added to the chart on Friday. The rate is consolidating in its borders.
In the meantime, it is likely that the rate is in the overbought zone, as it is trading far above the 55-, 100- and 200-day moving averages. This signals that the rate needs to trade sideways or retrace back down.
Daily chart
Read More: Technical Analysis
Sell orders are gone
On Friday, 65% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 66% short on Thursday.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.
The orders were 63% to sell on Thursday.
The sentiment was 66% short on Thursday.
Meanwhile, in the 100-pip range around the rate the pending orders were 51% to sell the GBP/USD pair.
The orders were 63% to sell on Thursday.