On Wednesday, it was announced that the Prime Minister of the United Kingdom Boris Johnson would prolong the deadline of the UK and EU trade talks.
The announcement caused a 150 pip surge. A detailed report was set to be published in the Expert Commentary section.
Economic Calendar
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. Since September, the publication caused moves of 15 to 20 pips.
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.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
The fundamental jump of the rate stopped at the 1.3040 level. Immediately afterwards, at 13:30 GMT, the rate found support in the pivot point at 1.3030.In the meantime, the rate had no technical resistance as high as 1.3118, where the weekly R1 simple pivot point was located at. In theory, the rate should reach for this level.
On the other hand, in the aftermath of the recent fundamental jump, the rate could trade sideways and consolidate.
Hourly Chart
On the daily candle chart, on Friday, 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 1.2820 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Wednesday, 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell the GBP/USD pair.
On Wednesday, 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell the GBP/USD pair.