On Friday morning, at 07:00 GMT watch the publication of the UK Gross Domestic Product data. The markets expect the data to reveal a stagnation on a month on month basis and a decrease of GDP on a quarterly basis. The Pound is set to react to the publication.
GBP/USD short-term view
In the near term future, the pair was expected to approach the 1.2200 mark. However, before the round level is reached, the 200-hour simple moving average is set to provide some support. Further below, take into account the weekly S1 simple pivot point at 1.2182.However, a potential recovery of the Pound against the US Dollar could result in the pair facing the combined resistance of the 100-hour simple moving average, the weekly simple pivot point at 1.2285 and the October high level of 1.2288. A breaking of these levels would test the resistance of the 50-hour SMA and the 1.2350 and 1.2400 level, before the 1.2430 mark is reached.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pierced the upper trend line of the channel down pattern. However, the combination of the 1.2300/1.2450 range and the 50-day simple moving average was enough to keep the rate down.Meanwhile, support is found in the 1.2035/1.2085 zone.
Daily chart
Read More: Technical Analysis
Traders are mostly long
This week, open GBP/USD positions by Swiss Foreign Exchange traders were 61% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 75% to buy.
This week, open GBP/USD positions by Swiss Foreign Exchange traders were 61% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 75% to buy.