On the GBP/USD charts it resulted in the rate retracing to the support of the 1.2590/1.2610 range. The range held and caused a recovery back to Thursday's levels. Economic Calendar
No notable events are scheduled until the middle of the next week.
GBP/USD hourly chart analysis
The recovery might be slowed down by the 200-hour simple moving average and the 1.2700 mark. Higher above the Pound against the US Dollar could face resistance near the 1.2800 mark. Near that level there is a high level zone at 1.2780/1.2795, the weekly R1 simple pivot point at 1.2812 and the August high level at 1.2819. Note that these levels were pierced during the end of the year decline of the Dollar.On the other hand, a decline of the pair could be slowed down by the 50 and 100-hour simple moving averages near 1.2680. Below the moving averages, the weekly simple pivot point is capable of impacting the rate at 1.2656. If these levels fail, the 1.2590/1.2610 is once again going to act as support.
Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, the pair has passed below the supporting trend line that had pushed the rate up since early October. In the case of the rate continuing to decline, support might be provided by the combination of the 50 and 200-day simple moving averages near 1.2550.Daily chart
Read More: Technical Analysis
Traders go short
On Wednesday, traders were 57% long, and pending orders in the 100 pip range around the rate were 56% to sell.
On Thursday, 54% of open position volume was in short positions. Meanwhile, pending orders were 54% to sell.
During Friday's trading hours, positions were still 54% short. Orders were 51% to buy.
On Thursday, 54% of open position volume was in short positions. Meanwhile, pending orders were 54% to sell.
During Friday's trading hours, positions were still 54% short. Orders were 51% to buy.