On Wednesday, the GBP/USD rate reached the 1.3000 level and bounced off its resistance and began a decline.
On Thursday morning, the rate found support in the 55-hour simple moving average and retraced back up. In the near term future, it appeared that the 1.3000 would be tested once again.
Economic Calendar
On Thursday, the Bank of England is scheduled to make a rate announcement at 11:00 GMT. All GBP traders are bound to watch this event. Since March, the event has caused moves from 40.0 to 62.1 pips.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. Note that the two last releases caused, respectively, 20 and 49 pip moves.
On Friday, minor 10.0-16.2 moves might be created by the 06:00 GMT UK Retail Sales.
Click on the link below to see the historical reaction tables.
GBP/USD short-term review
On Thursday morning, the rate was being pushed up by the 55-hour SMA. In addition, the pair had pierced through the resistance of the 200-hour simple moving average and the pivot point at 1.2950.In theory, the currency exchange rate should once again test the psychological resistance provided by the round level of 1.3000.
On the other hand, it is also possible that the 55-hour SMA fails to push the rate up. In this case scenario, the pair would look for support in the 100-hour SMA.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average. This technical level had kept the rate down throughout this week. Due to that reason, the rate has no technical resistance as high as 1.3100.
In the meantime, support was being provided by the 100 and 200-day SMAs near the 1.2730 level.
Daily chart
Read More: Technical Analysis
Sell orders are gone
On Thursday, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to buy the GBP/USD pair.
Previously, the orders were 63% to sell.
On Thursday, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to buy the GBP/USD pair.
Previously, the orders were 63% to sell.