On Thursday, the GBP/USD reached the support of the 1.3250 mark, which held the rate up on Monday and caused a surge to the 1.3400 mark.
During the second half of Thursday's European trading hours, the rate tested the support of the 1.3250 mark. Future forecasts were based upon whether or not the support holds.
Economic Calendar
On Thursday, the US CPI data sets and the Unemployment Claims are set to be published at 13:30 GMT.
The week is set to end with the US Producers Price Index, which has caused GBP/USD moves from 11.1 to 36.2 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
If the support of the 1.3250 level holds, the rate should first test the combined resistance of the weekly S1 simple pivot point at 1.3310 and the 1.3300 round exchange rate level. Afterwards, the resistance of the 1.3350 could be reached and above that the 55, 100 and 200-hour simple moving averages near 1.3370.On the other hand, if the 1.3250 fails to gold, the rate would first aim at the 1.3200 mark and afterwards the technical support of the weekly R2 simple pivot point at 1.3175.
Hourly Chart
On the daily candle chart, the rate failed to pass the resistance of the 1.3450 mark, which stopped the rate's summer surge and most recently also the autumn recovery.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
Since Tuesday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment decreased to being only 66% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to buy the GBP/USD pair.
Previously, the orders were 62% to buy.
Since Tuesday, 70% of trader open position volume on the Swiss Foreign Exchange was in short positions.
On Thursday, the sentiment decreased to being only 66% short.
Meanwhile, in the 100-pip range around the rate the pending orders were 76% to buy the GBP/USD pair.
Previously, the orders were 62% to buy.