On Friday morning, the GBP/USD currency exchange rate reached the resistance of the 1.4200 level. The 1.4200 mark caused a decline on Wednesday, which reached the 1.4100 level.
The near term future forecasts were based upon whether or not the 1.4200 level provides resistance.
Economic Calendar
At 12:30 GMT on Thursday, the US Preliminary GDP is set to be published. This event has caused GBP/USD moves from 11.5 to 16.8 pips.
Also on Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. Our analysts have been ignoring this event since February, as it did not have an impact on the USD. This week, another check of the data was done.
The GBP/USD has moved from 9.5 to 22.8 pips since April 22 due to the Unemployment Claims.
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
If the GBP/USD passes the resistance of the 1.4200 mark, the pair would test the resistance of the 1.4220 level, which provided resistance on Tuesday. In the case of the 1.4220 level failing, the pair could reach for the 1.4250 mark and the weekly R2 simple pivot point at 1.4258.A potential decline would look for support in the weekly R1 simple pivot point at 1.4181. Below the pivot point, the 55 and 100-hour simple moving averages could provide support near 1.4160. In the case of the GBP/USD declining even lower, the 200-hour SMA at 1.4120 and the zone above 1.4100 could be reached.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD remains in the borders of the channel up pattern, which has guided it since early April. The rate is testing the upper trend line of the pattern.In addition, note that the rate reversed its February surge just before reaching the 1.4250 level. Namely, the surge ended at the 1.4243 mark.
Daily chart
Read More: Technical Analysis
Traders remove sell orders
On Thursday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 72% of positions were short.
Meanwhile, in the 100-pip range around the rate the pending orders were 56% to sell. Previously, 80% of orders were to sell.
On Thursday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 72% of positions were short.
Meanwhile, in the 100-pip range around the rate the pending orders were 56% to sell. Previously, 80% of orders were to sell.