The GBP/USD has been retreating since the start of the year's trading. By the middle of Thursday's London trading hours, it was expected that the pair could reach below the 1.3200 level.
Economic Calendar
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 30.12-03.01 Event Historical Reactions
GBP/USD short-term review
At the start of this year's trading, the GBP/USD currency exchange rate declined. By the middle of Thursday's trading, the rate had reached the support of a 50.00% Fibonacci retracement level at 1.3196. Moreover, the 1.3200 mark was providing psychological support.The rate had two possible future scenarios. In the first case scenario, the pair should trade flat near 1.3200 until it is pushed up by the approaching 55-hour SMA. In that case the pair would next reach for the resistance of the monthly pivot point at 1.3226.
On the other hand, the 1.3200 support levels could fail and the pair would reach for the support levels at 1.3170. At that level, the 55-hour SMA was located together with the weekly R1 simple pivot point.
Hourly Chart
On the daily candle chart, the rate has been pushed up by the support of the 55-day simple moving average. The rate had surged for five consecutive trading sessions before bouncing off the 1.3300 level.
Daily chart
Read More: Technical Analysis
Traders short the decline
On Thursday, 56% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 91% of orders were to sell and 9% were buy orders.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 91% of orders were to sell and 9% were buy orders.