As explained on Thursday, all triangle patterns are eventually broken. The ascending triangle of the GBP/USD was broken to the downside. However, the sharp break out was stopped by the 100-hour simple moving average at the 1.3780 level. Afterwards, the pair traded sideways between the resistance of the 55-hour SMA and the support of the 100-hour SMA.
The sideways trading ended, as the UK Purchasing Managers Indices were released at 08:30 GMT. The rate increased volatility. Namely, initially the pair declined below the 100-hour SMA, just before the data was released. The data released was better than forecast. Due to that reason a 30 pip jump occurred. Since then, the pair had been ignoring the SMAs, as it appears to be looking for direction.
Economic Calendar
On Friday, at 13:45 GMT, the week's notable events will end with the publication of the US Manufacturing and Services PMIs. The GBP/USD has moved has moved from 8.5 to 24.2 pips allegedly due to the release since May 21.
Next week, on Wednesday, at 12:30 GMT, the US Durable Goods Orders and Core Durable Goods Orders change data will be published. The rate has moved only 7.9 to 17.9 pips due to the release since May.
At 12:30 GMT, on Thursday, the US Advance GDP is expected to impact the value of the US Dollar. In addition, the US Unemployment Claims could also slightly impact the USD. The GDP has moved the GBP/USD from 9.6 to 21.8 pips, and the Claims from 12.1 to 18.3 base points.
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
In the case of a surge, the GBP/USD might find resistance in the weekly R1 simple pivot point at 1.3830 and the week's high levels at 1.3835. Above these levels, the weekly R2 at 1.3904 and the 1.3900 mark could provide resistance.However, a decline might look for support first in the 1.3743 level, which is this week's low level. Below that, the 200-hour SMA at 1.3730 might serve as a support level.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate's recovery has pierced the resistance of the 100-day simple moving average. However, the 200-day SMA still provides resistance and strengthens the 1.3850 mark.Daily chart
On Friday, traders were short, as 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment was 60% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 54% to sell.