During today's morning, the GBP/USD exchange rate tried to surpass the resistance formed by the 55- and 100-hour SMAs, as well the monthly R2 and the Fibo 38.20%.
If the given resistance holds, it is likely that some downside potential could prevail in the market.
Economic Calendar
This week there is only one event that could affect the GBP/USD pair.
Today, the US Durable Goods data will be released at 12:30 GMT.
Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reached the resistance formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% and the monthly R2 circa 1.2910. During Thursday morning, the rate was testing the given resistance.If the given resistance holds, it is likely that a reversal south could occur in the nearest future. However, note that the currency pair could gain support of the weekly PP, as well the 200-hour SMA at 1.2828.
If the given support level holds, the British Pound could trade sideways against the US Dollar within the following trading session. Otherwise, the exchange rate could drop lower than the 1.2800 level.
Hourly Chart
On the daily candle chart, the exchange rate surpassed the resistance provided by the 200-day moving average.
The rate faced the resistance level formed by the monthly R2 at 1.2904. The given moving average could now provide support, thus, the rate could continue to extend gains.
Daily chart
Read More: Technical Analysis
Traders go short
On Thursday, 56% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were bullish. In the 100-pip range, 59% of orders were to sell and 41% were to buy.
Meanwhile, trader orders were bullish. In the 100-pip range, 59% of orders were to sell and 41% were to buy.