The GBP/USD passed all technical resistance levels up to the September high level zone. On Friday morning, the rate was testing the resistance of the zone. Future forecasts depended on whether the resistance holds.
Economic Calendar
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
GBP/USD short-term review
In the case that the September high zone holds, a potential decline would aim at the weekly simple pivot point at 1.3833. Below the pivot point, the pair could find support in the combination of the 55, 100 and 200-hour simple moving averages near 1.3810.However, a passing of the September high level zone could result in the pair first testing the 1.3900 level. Afterwards, the 1.3934 level where the weekly R1 simple pivot point is located at might serve as resistance.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate declined below the support of the 55 and 200-day simple moving averages at 1.3815.Meanwhile, the 100-day SMA remains near the 1.3920 level.
Daily chart
Read More: Technical Analysis
Traders are short
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 62% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to sell.
On Friday, traders were short, as 63% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, 62% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 73% to sell.