On Wednesday, the GBP/USD reached the targeted weekly R1 simple pivot point at 1.3222. In addition, on Thursday morning, the currency exchange rate started testing the combined resistance of the medium channel down pattern and the pivot point.
Future forecasts were based upon what would happen at the resistance levels.
Economic Calendar
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined.
Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
On Thursday, the pair was piercing the resistance of the weekly R1 simple pivot point and the resistance trend line near 1.3220.If the rate properly breaks this resistance level, it should reach for the August high level at 1.3260, which should provide resistance.
On the other hand, if the 1.3220 level holds, the rate could decline. In the case of a decline, the pair would aim at the hourly simple moving averages that were located from 1.3157 to 1.3135.
Hourly Chart
On the daily candle chart, the pair has come close to reaching the lower trend line of the long term channel up pattern. The trend line could provide support.
Daily chart
Read More: Technical Analysis
Short sentiment remains intact
On Wednesday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 69% short on Thursday.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.
On Wednesday, 67% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment was 69% short on Thursday.
Meanwhile, in the 100-pip range around the rate the pending orders were 53% to sell the GBP/USD pair.