On Friday morning, the GBP/USD was heading for the resistance of the 55 and 200-hour simple moving averages that were located above the 1.2950 mark.
In the near term future, the rate was expected to test these technical levels.
Economic Calendar
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
The GBP/USD has moved from 10.5 to 25.7 pips on the release.
On Wednesday, at 06:00 GMT the UK Consumer Price Index release could cause a move from 9.8 to 22.2 base points.
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the GBP/USD currency exchange rate could be impacted by the UK and US Markit Services and Manufacturing Purchasing Managers Indices.
The UK data could cause a move from 18.5 to 25.0 pips at 08:30 GMT. Afterwards, at 13:35 GMT the US PMIs could cause a move from 8.8 to 21.2 pips.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate dropped to the 1.2900 level. During today's morning, the rate reversed north.Given that the currency pair is pressured by the 55-, 100– and 200-hour SMA in the 1.2955/1.2980 range, it is likely that some downside potential could prevail in the market.
In the meantime, it is unlikely that bulls could prevail in the market, and the exchange rate could exceed the resistance level formed by the monthly PP located at the 1.3028 mark.
Hourly Chart
On the daily candle chart, the 55-day simple moving average was pierced. The GBP/USD showed that it can pass this resistance level.
In the meantime, the 100-day SMA was approaching the rate and supported the 1.2830 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the open GBP/USD volume was balanced. 50% was both short and long.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to sell the GBP/USD pair.
On Friday, 52% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, the open GBP/USD volume was balanced. 50% was both short and long.
Meanwhile, in the 100-pip range around the rate the pending orders were 52% to sell the GBP/USD pair.