The decline of the GBP/USD did not reach the support of the 200-hour simple moving average on Thursday. Instead, the rate found support in the 1.4005/1.4015 zone, which had provided both resistance and support on Monday.
On Friday morning, the GBP/USD had recovered to the 1.4070 level, where it encountered the 55-hour simple moving average. The 55-hour SMA could provide resistance to the currency exchange rate.
Economic Calendar
Next week, the UK CPI is set to come out on Wednesday at 06:00 GMT. The GBP/USD currency exchange has moved from 11.4 to 16.1 during the last five months.
Later on that day, the rate could move due to the FOMC Meeting Minutes at 18:00 GMT. The pair has moved from 5.1 to 10.2 pips on the release.
On Friday, the UK Retail Sales will be released. The pair has moved from 7.4 to 20.6 since January.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
In the case of the rate surging above the 55-hour simple moving average, the pair could reach for the combined resistance of the 100-hour simple moving average, the 1.4100 mark and the 1.4105/1.4110 zone.If the rate fails to pass the 55-hour SMA, the GBP/USD could look for support in the 1.4005/1.4015 zone and the 200-hour simple moving average near 1.4000.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the channel up pattern has held. Namely, its upper trend line provided enough resistance for the rate to decline.Moreover, on the larger scale chart, it appears that the 1.4000 mark is set to provide support.
Daily chart
Read More: Technical Analysis
Traders are short
On Friday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to buy. The orders were 85% to buy on Thursday.
On Friday, traders were short, as 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to buy. The orders were 85% to buy on Thursday.