The 1.3950 level managed to hold on Thursday. It resulted in a decline to the support of the 1.3900 level.
During the morning hours of Friday's European trading hours, the 1.3900 mark continued to provide support.
Economic Calendar
On Wednesday, at 07:00 GMT the UK Consumer Price Index is scheduled to be published. The release has caused moves from 9.7 to 16.1 pips since October.
At 09:30 GMT the UK Manufacturing PMI and Services PMI are set to be published. These two data sets have caused moves from 13.0 to 26.7 pips since October 23.
On the same day, at 13:45 GMT the US Services and Manufacturing PMIs could cause moves from 7.8 to 30.5 pips.
On Thursday, the US Final GDP is set to be released at 12:30 GMT. The event has caused moves from 10.9 to 39.4 pips since December 2019.
The week is set to end with the UK Retail Sales at 07:00 GMT. The event has caused moves from 8.6 to 20.6 pips.
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
In regards to the near term future, the rate should face the resistance of the 55-hour SMA near 1.3925. Above it, remains the resistance of the 1.3950 and 1.4000 levels, which both have held and caused declines during Thursday's trading.On the other hand, support is being provided by the 100 and 200-hour SMAs and the weekly simple pivot point near 1.3910. Below that, the 1.3900 level provides support. In the case of the 1.3900 mark being passed, the rate could look for support in the 1.3860 level and afterwards the weekly S1 simple pivot point at 1.3813.
Hourly Chart
On the daily candle chart, the rate appears to be trading sideways between the 1.3800 and 1.4000 levels.
Meanwhile, the 55-day SMA had almost caught up with the rate. Previously, the SMA was capable of pushing the GBP/USD up by just approaching it by approximately 50 base points. On Tuesday, the SMA had approached the rate as close as 39 pips.
Daily chart
Read More: Technical Analysis
Sentiment is unchanged
Since Wednesday, 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to buy the GBP/USD pair.
Since Wednesday, 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to buy the GBP/USD pair.