During Friday morning, the GBP/USD exchange rate surpassed the weekly R1 at 1.2985.
It is likely that bulls could prevail in the market in the short term, and the rate could remain above 1.3000.
Fed Rate Cut
The Federal Open Market Committee cut the Federal Funds Rate to a target range of 1.00% to 1.25% at an unscheduled emergency meeting.
The US policymakers announced the cut of the interest rate by a half of a percentage point in response to the increasing economic threat from the coronavirus outbreak.
Economic Calendar
Today, the US employment data will be released at 13:30 GMT. The event has caused moves from 16.2 to 51.3 pips since October.
This event consists of three data sets – the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
Next week, there will be couple events that could could affect the GBP/USD rate.
On Wednesday, March 11, the British GDP and Manufacturing Production data will be released at 9:30 GMT.
At the same day, the US CPI and Core CPI will be published at 12:30 GMT.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate reached the 1.2950 level. During Friday morning, the rate exceeded the weekly R1 at 1.2985.On the one hand, it is likely that the British Pound could continue to appreciate against the Greenback in the short run. Note that the nearest possible resistance—the monthly R1, is located only at 1.3096.
On the other hand, the currency pair could consolidate in the 1.3000 area within the following trading session. Also, it is unlikely that bears could prevail, and the pair could drop below 1.2880 due to support formed by the 55– and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the rate has close by the support of the 200-day simple moving average, which was strengthening the weekly S1 pivot point near 1.2700. However, the rate faced the resistance formed by the 55- and 100-day SMAs near 1.3000.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Friday 52% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, trader orders were bearish. In the 100-pip range, 35% of orders were to buy and 65% were sell orders.
On Thursday, trader orders were bearish. In the 100-pip range, 35% of orders were to buy and 65% were sell orders.