On Friday, the GBP/USD traded near the 1.2600 level, as it was trading between the support levels near 1.2500 and the resistances near 1.2635.
Previously, our analysts expected that the rate would decline to the 1.2600 level. In regards to the near term future, read below.
Economic Calendar
Next week, on Tuesday, the US Retail Sales could cause a small move in the markets at 14:30 GMT.
On Wednesday, the event of the week is set to occur, as at 20:00 GMT the FOMC Statement and Federal Funds Rate are going to be published.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
GBP/USD short-term review
Yesterday, the GBP/USD exchange rate declined to the weekly S3 at 1.2531. During Friday morning, the rate reversed north.Note that the currency pair faced the resistance level formed by the weekly S2 and the monthly S1 at 1.2636. If the given level holds, the British Pound could consolidate against the US Dollar in the short term.
Otherwise, it is likely that some upside potential could prevail in the market. In this case the exchange rate would have to surpass the resistance formed by the 55-hour SMA near 1.2740.
Hourly Chart
On the daily candle chart, the rate was oversold, as the closest by daily simple moving average was the 200-day SMA at 1.2700.
Daily chart
Read More: Technical Analysis
Traders remain neutral
Since Wednesday 51% of open GBP/USD position volume on the Swiss Foreign Exchange was in long positions.
On Friday, the sentiment became 53% short. Traders continue to bounce around in the neutral zone.
On Friday, the sentiment became 53% short. Traders continue to bounce around in the neutral zone.