The resistance of the weekly R1 simple pivot point and the 1.3830 mark has continued to keep the rate down. On Thursday, a decline of the rate retreated to 1.3800 and shortly traded below the round exchange rate level before slightly recovering.
In the meantime, by connecting the Wednesday and Thursday low levels and combining it with the resistance of the 1.3830 level, an ascending triangle pattern can be observed. Due to that reason it is assumed that the pair could get squeezed in between the support line and the 1.3830. A squeeze would most likely result in a break out, which usually occurs in a sharp move either up or down.
Economic Calendar
On Friday morning, the UK Retail Sales could impact the value of the Pound at 06:00 GMT. Moves from 11.2 to 15.6 have occurred on the release since May.
At 08:30 GMT, the UK Manufacturing and Services PMIs are going to impact the value of the GBP. 11.4 to 15.7 point move could be caused.
At 13:45 GMT, the week's notable events will end with the publication of the US Manufacturing and Services PMIs. The GBP/USD has moved has moved from 8.5 to 24.2 pips allegedly due to the release since May 21.
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
A break out to the upside would most likely reach the 1.3900 mark and the weekly R2 simple pivot point at 1.3904. Above this level there is no technical resistance as high as the weekly R3 simple pivot point at 1.4034. However, it is highly likely that the pair would encounter resistance in the 1.3850, 1.3950 and 1.4000 round exchange rate levels, despite them not being strengthened by a technical indicator.Meanwhile, a break out down would look for support in the 100-hour simple moving average near 1.3780, before aiming at the 200-hour SMA at 1.3710 and the 1.3700 mark, which is supported by the weekly simple pivot point.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has pierced the resistance of the 100-day simple moving average. However, the 200-day SMA still provides resistance and strengthens the 1.3850 mark.Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, traders were short, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 60% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell.
On Wednesday, traders were short, as 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 60% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 67% to sell.