The GBP/USD is breaking patterns and trading with high volatility. Swings of 100 pips down and up are normal.
The reason for the moves are Brexit negotiation news. Namely, the EU and UK have failed to negotiate a trade deal and a hard Brexit scenario is once again highly likely.
Economic Calendar
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. GBP/USD has moved from 22.8 to 43.0 pips on the announcement.
During next week, pay attention to the economic data releases already on Monday. On Monday, at 14:00 GMT the Institute of Supply Management will publish the Non-Manufacturing Purchasing Managers Index results. GBP/USD has moved 13.3 to 29.1 pips on the event.
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
On Friday, at 06:00 GMT, GBP pairs could move on the publication of the UK GDP data. The event has caused moves from 8.5 to 20.6 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
On Friday morning, it could be observed that the currency exchange rate was finding resistance in the 1.2950 mark. This level also provided the rate with resistance on Thursday.In theory, if the pair passes this level, it should reach the psychological resistance of the 1.3000 mark.
On the other hand, during the last couple of days, technical based forecasts failed, as the UK-EU trade deal announcements caused sudden swings that ignored simple moving averages.
Hourly Chart
On the daily candle chart, the 55-day simple moving average was strengthening the resistance of the 1.3000 mark.
Daily chart
Read More: Technical Analysis
Traders are neutral
Since Wednesday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, the sentiment changed, as 51% of volume was short and 49% was long
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP/USD pair.
Previously, the orders were 59% to buy.
Since Wednesday, 54% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, the sentiment changed, as 51% of volume was short and 49% was long
Meanwhile, in the 100-pip range around the rate the pending orders were 61% to sell the GBP/USD pair.
Previously, the orders were 59% to buy.