As expected, on Thursday, the GBP/USD reached the support of the 200-hour simple moving average. At the 1.3100/1.3120 level.
This resulted in a surge, which by the middle of Friday's trading reached the resistance of the 55 and 100-hour simple moving average near 1.3190.
Economic Calendar
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The GBP/USD has moved from 11.1 to 36.2 pips during the release of the PPIs.
Next week, notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Wednesday, the UK Consumer Price Indices could cause an increase of volatility. However, it is highly unlikely, as it has occurred quite rarely during the recent past.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
The week will end with retail sales data from the UK at 07:00 GMT
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
It is likely that the currency pair could be pushed down by the 55– and 100-hour moving averages near 1.3200. In this case the pair could target the weekly PP located at 1.3062.However, if the 200-hour SMA holds, the exchange rate could reverse north and try to exceed the predetermined resistance.
Hourly Chart
On the daily candle chart, the rate has clearly passed the October high level of 1.3180. Next target of a surge could be the August high at 1.3480.
In the meantime, the rate had additional support on the chart at the 1.3000 level. At that level, the 55-day simple moving average was located at.
Daily chart
Read More: Technical Analysis
Traders go short
On Thursday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, traders went short, as 60% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP/USD pair.
On Thursday, 76% of orders were to buy.
On Thursday, 53% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Friday, traders went short, as 60% of volume was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 58% to sell the GBP/USD pair.
On Thursday, 76% of orders were to buy.