On Friday morning, at 07:00 GMT watch the publication of the UK Gross Domestic Product data. The markets expect the data to reveal a stagnation on a month on month basis and a decrease of GDP on a quarterly basis. The Pound is set to react to the publication.
GBP/USD short-term view
On Thursday, it was spotted that the pair is being approached by the 200-hour simple moving average near 1.2240. If the SMA pushes the rate higher, it would test the 1.2300/1.2310 range. Above 1.2310 the 1.2350 and 1.2400 levels and the 100-hour simple moving average could act as resistance, before the rate reaches the November high level at 1.2430.In the case of a decline of the GBP/USD below the 1.2240 level, the Pound might look for support against the US Dollar in the 1.2200 level and the weekly S1 simple pivot point at 12182.
Hourly Chart
GBP/USD daily chart's review
On the daily candle chart, the GBP/USD pierced the upper trend line of the channel down pattern. However, the combination of the 1.2300/1.2450 range and the 50-day simple moving average was enough to keep the rate down.Meanwhile, support is found in the 1.2035/1.2085 zone.
Daily chart
Read More: Technical Analysis
Traders are mostly long
On Thursday, open GBP/USD positions by Swiss Foreign Exchange traders were 62% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 58% to buy.
On Thursday, open GBP/USD positions by Swiss Foreign Exchange traders were 62% long.
Meanwhile, trader pending orders in the 100 pip range around the rate were 58% to buy.