The British Pound plummeted by 110 pips or 0.80% against the US Dollar on Thursday. A breakout occurred through the lower boundary of a descending channel pattern during Thursday's trading session.
Economic Calendar
On Friday, the UK Retail Sales could cause a move from 7.4 to 20.6 pips at 06:00 GMT.
GBP/USD short-term review
Given that a breakout has occurred, sellers are likely to continue to drive the price lower during the following trading session. The potential target for bearish traders will be near the 1.3500 level.However, the GBP/USD currency exchange rate could reverse from a psychological support level at 1.3600 within this session.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD exchange rate breached the 200- day simple moving average at 1.3776.In the near future, the currency exchange rate could trend bearish. The possible target for bearish traders will be near the 1.3600 area.
Daily chart
Read More: Technical Analysis
Traders are long
On Thursday, traders were bearish, as 55% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, 58% of positions were long.
Meanwhile, in the 100-pip range around the rate, the pending orders were 73% to buy.
On Thursday, traders were bearish, as 55% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, 58% of positions were long.
Meanwhile, in the 100-pip range around the rate, the pending orders were 73% to buy.