On Friday, the GBP/USD retreated to the last technical support level that it has above the 1.2780 level. Namely, the weekly pivot point at 1.2883.
If the rate passes this level on Friday, a sharp decline could start. However, take into account that our analysts spotted a trend line, which could slow down a fall of the rate near the 1.2850 mark.
Economic Calendar
This week there are no more data releases, which might impact this rate.However, take into account that the first notable release of next week will be already on Monday. At 14:00 GMT the US ISM Manufacturing PMI is set to be published.
Meanwhile, next week's scheduled event historical data tables have been published. Some major moves can be expected. Click on the link below to read the article.
Read More: 02.12-06.12 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reversed south from the upper boundary of the short-term ascending channel. During Friday morning, the rate was testing the support formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2900 area.From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the currency pair should reach the lower channel line located circa 1.2845.
However, if the given support holds, it is likely that a reversal north could occur in the nearest future. In this case, it is unlikely that the rate could exceed the weekly R1 at 1.2942.
Hourly Chart
On the daily candle chart, the rate is approaching the support of a large scale channel up pattern.
In the meantime, take a look at the still active medium scale channel down pattern. In the case of the rate breaking the weekly R1 simple pivot point, the pattern's upper trend line would provide resistance near 1.2965.
Daily chart
Read More: Technical Analysis
Traders short GBP/USD
Since Thursday, 65% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were set to sell. In the 100-pip range, 61% of orders were sell and 39% were to buy.
Previously, 71% of orders were to sell.
Meanwhile, trader orders were set to sell. In the 100-pip range, 61% of orders were sell and 39% were to buy.
Previously, 71% of orders were to sell.