The support of the triangle pattern held out. On Friday morning, the currency exchange rate surged. By the middle of the day's GMT trading hours, the rate had reached the 1.3600 level.
In the meantime, the rate was being squeezed in between the resistance of the 100-hour SMA and the support of the 200-hour SMA.
Economic Calendar
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 18.5 to 32.4 pips since August.
During the next week there will be minor data sets published, which could cause initial reactions of up to 20 pips. Traders with close by tight stop losses should take into account the times of the macroeconomic data releases.
On Wednesday, the United States Bureau of Labor Statistics is set to publish the Consumer Price Index and Core Price Index at 13:30 GMT.
Afterwards, at 13:30 GMT, expect the weekly US Unemployment Claims. Despite the attention this release gets, we do not recommend monitoring it closely, as the last two releases caused moves below ten base points on the GBP/USD.
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
The GBP/USD exchange rate continued to trade within the descending triangle pattern.From a theoretical perspective, it is likely that the British Pound continue to trade sideways against the US Dollar within the predetermined pattern in the nearest future.
Meanwhile, note that the currency pair is squeezed in between hourly simple moving averages. The squeeze could result in a break-out up or down, which would test the triangle pattern.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the channel up pattern, which has guided the rate since September.
In regards to the future, due to the angle of the resistance line, the rate still has room for a surge. However, a decline to the 55- day SMA is likely, as the rate had done so each time after reaching the upper trend line.
Daily chart
Read More: Technical Analysis
Buy orders are gone
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 63% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell the GBP/USD pair. Previously, the orders were 60% to buy.
On Thursday, 66% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment was 63% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell the GBP/USD pair. Previously, the orders were 60% to buy.