The retracement back up of the GBP/USD met with the resistance of the 55-hour SMA, which stopped the surge on Friday morning near the 1.3090 level.
The future forecast scenarios were based upon whether the resistance of the 55-hour SMA holds. US ISM Non-Manufacturing PMI
Automatic Data Processing, Inc. released the US ADP Non-Farm Employment Change data, which came out better-than-expected of 202K compared with the forecast of 160K.
The data, as it had done before, did not impact the markets at all, despite on some calendars being shown as high impact. The 13:15 GMT to 13:16 GMT candle has a five pip range, and it is smaller than the rest of the candles that had no data being released.
Economic Calendar
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the GPB/USD has moved from 21.7 to 51.3 pips on the release.In regards to next week, on Tuesday, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
GBP/USD short-term review
The pair is being kept down by the technical resistance of the 55-hour simple moving average, which was located near the 1.3090 level.If the resistance level manages to hold, the exchange rate should bounce off it and resume its decline. In that case the pair would once more test the support of the 1.3020 level, which caused the recent surge to the SMA.
On the other hand, if the SMA's resistance fails, the rate would surge to the resistance of the 100-hour simple moving average, which was located near the 1.3110 level.
Hourly Chart
On the daily candle chart, the December channel down pattern can be observed.
In theory, if the upper trend line of the pattern holds, the rate should get squeezed in between the support of the 55-day simple moving average near 1.3000 and the resistance of the trend line.
Daily chart
Read More: Technical Analysis
Traders short the pair
By the middle of Thursday's European trading, sentiment was 57% short.
On Friday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positons.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 54% of orders were to sell and 46% were buy orders.
Previously, the orders were 65% to buy.
On Friday, 55% of open GBP/USD position volume on the Swiss Foreign Exchange was in short positons.
Meanwhile, trader orders were almost neutral. In the 100-pip range, 54% of orders were to sell and 46% were buy orders.
Previously, the orders were 65% to buy.