On Wednesday, the GBP/USD made two failed attempts to pass the resistance of the 1.2800 level. These attempts resulted in a decline of the rate, which by the middle of Thursday's GMT trading hours had reached 1.2660.
In the meantime, the rate revealed a channel up pattern, which could be used for future guidance.
Economic Calendar
Economic calendars show the US PPI and Unemployment Claims on Thursday. However, a notable reaction to the event is not expected.
On Friday, some might watch the 06:00 release of UK GDP and Manufacturing Production. This event could cause a move of GBP/USD from 11.9 to 29.8 base points.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate revealed a short-term ascending channel. During Thursday morning, the rate reversed north from the lower channel line.From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the currency pair could reach the weekly R1 at 1.2823.
Meanwhile, note that the pair could remain under pressure of the 55– and 100-hour SMAs near 1.2700. Note that the rate could gain support from the weekly PP, the monthly R1, the Fibo 61.80% and the 200-hour SMA in the 1.2576/1.2646 range.
Hourly Chart
On the daily candle chart, the currency exchange rate was finding additional support in the 200-day simple moving average at the 1.2685 level.
Daily chart
Read More: Technical Analysis
Swiss traders short GBP/USD
On Thursday, 61% of trader open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the rate, 70% of pending orders were set to sell the GBP/USD.
Previously, 50% of orders were to sell and buy, as they were balanced.
Meanwhile, in the 100-pip range around the rate, 70% of pending orders were set to sell the GBP/USD.
Previously, 50% of orders were to sell and buy, as they were balanced.