The GBP/USD exchange rate surpassed the psychological level at 1.2950. During Thursday morning, the rate was testing the resistance provided by the weekly PP.
In general, it is likely that the rate could trade upwards within the rising wedge pattern in the short run.
Economic Calendar
This week's data is available. Click on the link below to see the historical data tables with the reactions to the events.
Today, the US CPI data sets are set to be published at 13:30 GMT. The GBP/USD has moved from 8.2 to 19.4 pips because of the release.
On Friday, the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the pair since September 2019 from 10.5 to 87.4 base points.
Note that the 87.4 pips most likely was caused by another aspect. The second largest move has been 15.5 pips.
Read More: 10.02-14.02 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reversed south from the resistance level—the weekly PP at 1.2986. During Thursday morning, the rate was testing the given level.Note that the currency pair has been trading within the rising wedge pattern since last Friday. Thus, from a theoretical perspective, it is likely that the pair could trade within the given pattern in the short run.
However, if the given resistance level holds, it is likely that a breakout south could occur in the nearest future. In this case it is unlikely that the exchange rate could decline below the 100-hour SMA near 1.2940.
Hourly Chart
On the daily candle chart, the rate's decline could look for support in the 100-day SMA, which on Thursday was located near 1.2900.
Daily chart
Read More: Technical Analysis
Traders remain neutral on GBP/USD
On Thursday, 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were slightly bullish. In the 100-pip range, 54% of orders were to buy and 46% were sell orders.
Meanwhile, trader orders were slightly bullish. In the 100-pip range, 54% of orders were to buy and 46% were sell orders.