Above all, on Friday, the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate are set to move the markets.
GBP/USD short-term view
In the near term future, the currency pair was expected to get squeezed in between the support of the 100 and resistance of the 50-hour simple moving averages at 1.1300 and 1.1380.A break out from the squeeze upwards would face resistance in the 1.1500 mark, which stopped the rate's surge during the first part of this week. Higher above, there is no technical resistance as high as the weekly R2 simple pivot point at 1.1812. Due to that reason, round exchange rate levels are likely to impact the rate.
Meanwhile, a decline below 1.1300 is expected to find support in 1.1250. Further below, there is no technical support as low as the 200-hour SMA near 1.1040. Namely, in the case of a decline also look at round exchange levels.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has reached above the resistance of the 2020 March low level. Meanwhile, the pair has additional technical resistance above 1.1500. Namely, the 50-day simple moving average near 1.1600 is highly likely going to impact the rate.Higher above, note the July low and September high zone near 1.1800. In addition, the 100-day SMA is approaching the 1.1800 level.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Wednesday, traders went short, as 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to sell the GBP/USD.
On Thursday, open positions were 58% short and pending orders were 51% to buy.
On Wednesday, traders went short, as 56% of trader open position volume on the Swiss Foreign Exchange was in short positions.
In the meantime, pending orders in a 100-base point range around the pair were 58% to sell the GBP/USD.
On Thursday, open positions were 58% short and pending orders were 51% to buy.