The first scenario laid out on Thursday became reality, as the rate pierced the resistance of the late September channel down pattern and reached the resistance levels at 1.2350. Moreover, the rate touched the 1.2415 level before retreating back down.
On Friday morning, the rate was trading sideways below a weekly pivot point that was located at the 1.2356 level. In general, the pivot point was either going to be broken on Friday or stop providing resistance on Monday, as weekly pivot points will be recalculated on Monday.
US ISM Non-Manufacturing PMI
The Institute for Supply Management released the US ISM Non-Manufacturing PMI survey data results, which came out worse-than-expected of 52.6 compared to the forecast of 55.1.
The Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee Anthony Nieves commented: "The non-manufacturing sector pulled back after reflecting strong growth in August. The respondents are mostly concerned about tariffs, labor resources and the direction of the economy."
Economic Calendar
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 14.8 to 34.1 pips on the GBP/USD charts since May 2019.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
GBP/USD short-term review
The GBP/USD is more likely to surge than decline, as it is being approached by the support of the 55 and 100-hour simple moving averages, which have reached above the 1.2300 mark.In addition, the weekly pivot point at 1.2356, which kept the rate down on Friday morning, is either going to be broken by the support of the SMAs or disappear and let the rate move higher. Namely, weekly pivot points are recalculated on Monday, and this level will move.
On the other hand, watch the SMAs closely, as they were pierced a couple of times during the week and might actually fail.
Hourly Chart
On the daily candle chart, the rate has returned back above the 55-day SMA. Due to the rate bouncing around it, it is suggested to start ignoring this level.
Namely, it can be observed that the support of the SMA failed on October first. Afterwards, the levels resistance was ignored throughout the week.
Meanwhile, the 100-day SMA was approaching the rate from above and could provide technical resistance above the 1.2400 mark.
Daily chart
On Friday morning, 52% of volume was long, indicating that traders were neutral.
Meanwhile, trader orders were bullish. In the 100-pip range 57% of orders were to buy and 43% were to sell.
Previously, the orders were neutral, as 51% of orders were to sell.