The GBP/USD currency exchange rate managed to pass the resistance of the 1.3800 level. It resulted in a sharp surge, which stopped, as it approached the 1.3850 mark. Afterwards, the GBP consolidated its gains against the US Dollar by retracing down.
On Friday morning, the decline found support in the weekly R1 simple pivot point at 1.3826.
Economic Calendar
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
GBP/USD short-term review
If the pair resumes its surge, it could aim at the resistance cluster that surround the 1.3880 level. The zone consists of the mid-August high levels and the weekly R2 simple pivot point. However, note that the pair would have to first pass the 1.3850 level.On the other hand, a potential decline of the currency exchange rate would first need to pass the weekly R1 simple pivot point. Afterwards, the 55-hour simple moving average could provide support at 1.3795. Below it, the 100-hour simple moving average at 1.3780 could keep the rate up.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the rate has broken the resistance of the 55 and 200-day simple moving averages, which were strengthening the 1.3800 mark.The next resistance on the daily candle chart is the 100-day simple moving average at 1.3921. Meanwhile, note that the 55 and 200-day SMAs could start to provide support to a potential larger scale surge to the summer high level of 1.4000.
Daily chart
Read More: Technical Analysis
Traders go short
Since Tuesday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, traders went short, as 58% of volume as in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 83% to sell.
Since Tuesday, traders were neutral, as 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
On Friday, traders went short, as 58% of volume as in short positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 83% to sell.