The decline of the GBP/USD ended at the 1.3050 mark, as the rate found support at this level on Friday morning.
By 08:30 GMT, the rate's surge had passed the resistance of the 55-hour simple moving average and had no resistance. Due to that reason, the rate could reach back up to the 1.3176 level, where the weekly R2 simple pivot point was located at.
Economic Calendar
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.
On Tuesday, the US Durable Goods Orders and Core Durable Goods Orders will be released at 12:30 GMT. This event has caused moves on the GBP/USD from 11.2 to 21.9 base points.
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. However, recently both of them have not caused notable moves.
The GDP has moved the GBP/USD from 9.8 to 26.8 pips since July 2019. Meanwhile, the Unemployment Claims since September 24 have caused 10.0 to 22.3 pips moves
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
As the rate passed the resistance of the 55-hour simple moving average, it started to test the psychological resistance of the 1.3100 level.In the case of this level failing to hold the rate down, the GBP/USD should make another attempt to pass the resistance of the weekly R2 simple pivot point that was located at 1.3176. The pivot point reversed the rate's recent surge.
On the other hand, the pair could bounce off the 1.3100 mark and trade sideways in the 1.3050/1.3100 range.
Hourly Chart
On the daily candle chart, on Friday, a channel up pattern was added. It represents the rate's mid-September and October surge.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Thursday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 53% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy the GBP/USD pair.
On Thursday, 57% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, 53% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy the GBP/USD pair.