In the aftermath of Wednesday's sharp surge, the GBP/USD began a retracement back down. By the middle of Thursday's GMT trading hours, the rate had reached the 1.2940 level.
On Wednesday, October 14, the British Pound extended gains against the US Dollar. The GBP/USD exchange rate gained 1.39%.
It is likely that the Pound has been appreciating, as the European Union and the UK decided to continue Brexit talks to try resolve existing gaps in the trade agreement.
Note that the EU and UK aim to create a new trade deal by January 1, 2021.
Economic Calendar
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. Since September, the publication caused moves of 15 to 20 pips.
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
The GBP/USD has moved from 10.5 to 25.7 pips on the release.
Click on the link below to find out more about the data releases.
GBP/USD short-term review
It is likely that some downside potential could prevail in the market in the nearest future, as the currency pair is pressured by the 55– and 100-hour SMAs in the 1.3000 area.In the meantime, note that the pair could gain support from the weekly S1 at 1.2913. If the given level holds, the rate could trade sideways within the following trading session.
Hourly Chart
On the daily candle chart, the 55-day simple moving average was pierced. The GBP/USD showed that it can pass this resistance level.
In the meantime, the 100-day SMA was approaching the rate and supported the 1.2830 level.
Daily chart
Read More: Technical Analysis
Traders are neutral
On Wednesday, 51% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the open GBP/USD volume was balanced. 50% was both short and long.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy the GBP/USD pair.
On Thursday, the open GBP/USD volume was balanced. 50% was both short and long.
Meanwhile, in the 100-pip range around the rate the pending orders were 64% to buy the GBP/USD pair.