During today's morning, the GBP/USD exchange rate continued to test the resistance level formed by the monthly R2 and the Fibo 38.20% at 1.2920.
The given resistance level could be passed, as soon as the 55-hour SMA push the rate through it.
Economic Calendar
This week there are no events left that could affect the GBP/USD pair.
Take into account that next week there will not be many events, which are expected to affect the GBP/USD rate significantly.
On Thursday, October 24, the US Durable Goods data will be released at 12:30 GMT.
Take a look at the published historical data tables by clicking on the link below.
Read More: 14.10-18.10 Event Historical Reactions
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate failed to exceed the resistance level formed by the monthly R2 and the Fibo 38.20% at 1.2918. During Friday morning, the rate continued to test the given resistance.Note that the currency pair is supported by the 55-hour moving average, currently located at 1.2832. The given SMA could push the pair through the given resistance. A possible upside target is the weekly R2 at 1.3032.
However, if the given resistance holds, it is likely that the British Pound could continue to trade sideways against the US Dollar in the short term. Also, it is unlikely that the rate could drop lower than 1.2760 due to the support formed by the 100-hour SMA.
Hourly Chart
On the daily candle chart, the exchange rate surpassed the resistance provided by the 200-day moving average.
The rate faced the resistance level formed by the monthly R2 at 1.2904. The given moving average could now provide support, thus, the rate could continue to extend gains.
Daily chart
Read More: Technical Analysis
Traders go short
On Friday, 67% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 89% of orders were to sell and 11% were to buy.
Meanwhile, trader orders were strongly bearish. In the 100-pip range, 89% of orders were to sell and 11% were to buy.