On Wednesday, the GBP/USD passed one support level after another. During the day, all of the technical support levels were passed and the last one of them, the 100-hour simple moving average, was pierced.
However, this did not result in a decline, as the combination of the 100-hour SMA and the 1.3550 eventually held and caused a recovery.
By the start of Thursday's European trading hours, the GBP/USD pair had reached above the 100 and 200-hour simple moving averages and the weekly simple pivot point from 1.3563 to 1.3580. In addition, the pair pierced the last technical level, the 55-hour SMA, at 1.3600.
Economic Calendar
On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD. The GBP/USD has moved from 6.6 to 18.3 pips on the releases that occurred in September.
On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.
The pair has reacted to the US employment data since May 2021 with moves from 35.2 to 76.4 base points.
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
If the GBP/USD clearly passes the resistance of the 1.3600 mark and the 55-hour SMA, the pair could potentially reach for this week's high level zone above the 1.3640 level. Above this zone, the pair might encounter resistance first in the 1.3700 level and afterwards, the 1.3714 level, where the weekly R1 simple pivot point is located at.On the other hand, a decline would have to move through the support of the 100 and 200-hour SMAs and the weekly simple pivot point at 1.3590/1.3563, before testing the support of the 1.3550 mark.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has recovered and passed the resistance of the July and August low level zone. Meanwhile, the 55, 100 and 200-day simple moving averages were located at 1.3760, 1.3845 and 1.3850.Daily chart
Read More: Technical Analysis
Traders are long
On Wednesday, traders were long, as 56% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 55% long.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to sell.
On Wednesday, traders were long, as 56% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the sentiment was 55% long.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to sell.