The decline of the GBP/USD currency exchange rate has reached the support of the 200-hour SMA. Moreover, the decline was expected to continue.
Economic Calendar
On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT. On the same day, the FOMC Meeting Minutes will be published at 19:00 GMT.Next week, data releases will start on Tuesday at 15:00 GMT. The US ISM Non-Manufacturing PMI will be released at that time. This event has caused moves from 8.8 to 37.8 pips on the GBP/USD.
On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused moves that are not large, but still worth mentioning. For example, the GBP/USD moved 12.1 pips.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the GPB/USD has moved from 21.7 to 51.3 pips on the release.
Next week's scheduled event historical data tables have been published. Click on the link below to read the article.
GBP/USD short-term review
The GBP/USD has continued to decline. By the middle of Friday's London trading hours, the pair reached the support of the 200-hour simple moving average at 1.3061. In theory, the rate had two possible scenarios.If the 200-hour SMA holds, the rate could consolidate by trading sideways or surging to the 1.3120 level.
In a second scenario, the pair would pass the simple moving average's support and reach for the weekly simple pivot point at 1.3038.
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.
On Friday, it appeared that the rate was retreating back down to the SMA, which was located near 1.2980.
Daily chart
By the middle of Friday's trading, 54% of position volume was short.
On Thursday, trader orders were strongly bearish. In the 100-pip range, 91% of orders were to sell and 9% were buy orders.
The sell orders were gone on Friday. Instead, 66% of orders were to buy and 34% were to sell.