By the middle of Friday's London trading, the GBP/USD continued to trade between the 1.2860 and the 1.2920 levels.
In the meantime, the rate was approached by the hourly simple moving averages from the above. It indicates that the pair could be pushed down through the support of the 1.2860 level.
Economic Calendar
Next week, already on Monday, a data release could cause a notable move on the GBP/USD charts.
The US ISM Manufacturing PMI is scheduled to be published at 15:00 GMT. This event has caused moves from 14.3 to 28.9 pips since October.
Some might consider watching the ADP Non-Farm Employment Change on Wednesday at 13:15 GMT. This event has mostly caused moves from 11.8 to 20.0 base points.
On Wednesday, at 15:00 GMT the US ISM Non-Manufacturing PMI is set to be published. Last year, this event caused moves from 23.6 to 37.8 pips. This year, there were two moves of 11.9 and 20.6 pips.
On Friday, the US employment data will be released at 13:30 GMT. The event has caused moves from 16.2 to 51.3 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 02.03-06.03 Event Historical Reactions
GBP/USD short-term review
On Friday, the resistance of the 38.20% Fibonacci retracement level at 1.2920 was strengthened by the 55-hour simple moving average.Due to the additional technical resistance approaching the rate, it was expected that the rate would first test the support of the pivot point at 1.2860. If this level would get passed, the pivot at 1.2832 level would be tested next.
On the other hand, the rate might trade sideways until the additional resistance of the 100 and 200-hour SMAs reach the GBP/USD rate.
Hourly Chart
On the daily candle chart, two notable factors can be spotted. The rate is ignoring the impact of the 100-day simple moving average. In addition, the 1.2850 level stopped the rate's last week's decline.
Daily chart
Read More: Technical Analysis
Open position volume remains unchanged
On Friday, 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment became balanced. 50% of volume was in short and long positions.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to buy and 50% were sell orders.
On Thursday, the sentiment became balanced. 50% of volume was in short and long positions.
Meanwhile, trader orders were neutral. In the 100-pip range, 50% of orders were to buy and 50% were sell orders.