At the time of writing, the pair was finding support in the 1.3080 level, which was strengthened by the support of the 100-hour simple moving average.
Economic Calendar
During the last week of January, most attention will be paid to the US Federal Reserve and the Bank of England. Both central banks have scheduled their rate announcements for this week.
Before that, on Tuesday, minor spike in volatility could occur due to the US Durable Goods Orders Release at 13:30 GMT. The event has caused GBP/USD moves from 6.2 to 16.8 pips.
The US will be the first to publish their rate. The FED's event is scheduled for 19:00 GMT on Wednesday. This time, no rate cut is expected. GBP/USD has moves 17.0 and 21.3 pips during the times that no rate cut has occurred.
The Bank of England will announce their rate decision on Thursday, at 12:00 GMT. The announcement, without any rate changes, since June 2019 has caused GBP/USD moves from 21.3 to 83.6 pips.
Afterwards, on the same day, the US Advance GDP will be released at 13:30 GMT. A move from 11.5 to 36.1 pips can be expected.
The week's event historical data tables have been published. Click on the link below to read the article.
Read More: 27.01-31.01 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate traded sideways in the 1.3120 area. During Friday morning, the rate was trading at 1.3100.On the one hand, the currency pair could gain support from the 100– and 200-hour SMAs, currently located circa 1.3050, and some upside potential could prevail in the market. In this case the pair could exceed the 1.3140 level.
On the other hand, the exchange rate could be pressured by the 55-hour SMA, and go downwards. However, if the given 100– and 200-hour SMAs hold, the rate could trade sideways.
Hourly Chart
On the daily candle chart, the rate is being supported by the 55-day simple moving average, which on Friday was located at the 1.3030 level.
Daily chart
Read More: Technical Analysis
Traders short the pair
Since Wednesday, 53% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 56% by midday on Friday.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to sell and 50% were buy orders.
The orders were 53% to buy on Thursday.
The sentiment was 56% by midday on Friday.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to sell and 50% were buy orders.
The orders were 53% to buy on Thursday.