During today's morning, the GBP/USD exchange rate tested the resistance level formed by the monthly R2 and the Fibo 38.20% at 1.2920.
In general, the given resistance level could be passed, as soon as the 55- and 100-hour SMAs 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
On Wednesday, the GBP/USD exchange rate tried to surpass the resistance level—the weekly R1 at 1.2844. During today's morning, the rate was testing the resistance level by the Fibo 38.20% and the monthly R2 at 1.2904.Given that the currency pair is supported by the 55– and 100-hour moving averages, it is likely that some upside potential could prevail in the market in the short run. Note that the pair would have to surpass the weekly R2 at 1.3032.
However, if the given resistance level holds, it is likely that the British Pound could trade sideways against the Greenback within the following trading session. It is unlikely that bears could prevail, and the rate could drop lower than the psychological level at 1.2760.
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 Thursday, 66% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 56% of orders were to sell and 44% were to buy.
Meanwhile, trader orders were slightly bearish. In the 100-pip range, 56% of orders were to sell and 44% were to buy.