During Thursday's morning hours, the GBP/USD dropped to the 1.3020 level, where it found support and began a retracement back up.
In the meantime, the pair had broken off the resistance of the 55, 100 and 200-hour simple moving averages and left them above 1.3115. US ISM Non-Manufacturing PMI
Automatic Data Processing, Inc. released the US ADP Non-Farm Employment Change data, which came out better-than-expected of 202K compared with the forecast of 160K.
The data, as it had done before, did not impact the markets at all, despite on some calendars being shown as high impact. The 13:15 GMT to 13:16 GMT candle has a five pip range, and it is smaller than the rest of the candles that had no data being released at the time.
Economic Calendar
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.Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate consolidated in the 1.3100 area. During Thursday morning, the rate tumbled to the 1.3020 level.From the one hand, it is likely that the British Pound could continue to depreciate against the US Dollar in the short run. In this case the currency pair could gain support of the weekly S1 at 1.2997.
On the other hand, the exchange rate could reverse north within the following trading session. In this case it is unlikely that the pair could exceed the 1.3100 mark due to the resistance formed by the 55-, 100– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Wednesday, 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Thursday's European trading, the sentiment was 57% short.
Meanwhile, trader orders were bullish. In the 100-pip range, 65% of orders were to buy and 35% were sell orders. Previously, the orders were 57% to buy.
By the middle of Thursday's European trading, the sentiment was 57% short.
Meanwhile, trader orders were bullish. In the 100-pip range, 65% of orders were to buy and 35% were sell orders. Previously, the orders were 57% to buy.